Read your loadrunner license agreement. Only testing across a LAN is supported (at least through LoadRunner 7.6). Not only would you be in violation of your license agreement, but you will have a very difficult time in the analysis stage.
You have a number of methodology problems with your test.
1. The same machine should not be used for both the generation of load and the controller. GUI is very expensive from a resource standpoint, particularly anything that updates on a regular basis. Consider the use of servers with black screen savers for your load generation.
2. You have no control factor identified in your test bed.
3. You do not indicated where in the test process you are. If you are still in the process of tuning your application then placing load across a restricted WAN link (license issues aside) is bad practice. Until the performance of your application is known your load generators should be as close to your application as possible. To do otherwise would result in something such as X+y= 8.125 seconds. Solve for either X (network) or y (application). Loadrunner is a cool tool, but it cannot provide accurate breakdown like this. A network performance testing tool is required to obtain the 'y' component directly. 'y' can be inferred through the use of control factors (VUs) located on the same network segment/vlan/host as the service under load, however because of the delays in the servicing of the client request and the weight of the client API a true network number is not directly achievable with LoadRunner.
4. You are controlling your test across the same restricted link which is to be used by the virtual users accessing the service under load. Since you're looking at a WAN connection, your use of the controller passing administrative information has the effect of distorting the pipe bandwidth used for the test. The more information (higher frequency of your updates) you pass from the load generator to the server the worse your pipe restriction.
Add a 'C' machine located inside of your LAN and see if the same problems occur. If they do, then open up a case with Mercury Support. My guess is that you will reach a limitation on support related to your license agreement for LoadRunner quite quickly if you insist on the use of the remote load generator.