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i'd say... stop downloading or uploading for week or so... while you do that, go read about peerguardian and protowall... (i have peerguardian lite with the methlabs.org/sync blocklists) it really helps...
i also got a letter from my isp (they got it from the mpaa) and it was a weird coincidence that the date coincided with the day i forgot (or was too lazy) to load peerguardian...
Or use a program with a build-in blocklist. Like emule.
Aseurus has a builtin ip bocker. Its the damn best Bit Torrent program you could get. Yeah, I recommend that. Dont bother with Kazaa for music and movies. Erm, and use an IP blocker like Protowall. The damn best IP blocker ur going to get
Well the Movie industry may actually be watching torrents more than even CrapTrack these days since its so big and just as easy if not easier to find you, and no a fw nor router wont really do shit to stop that.
The company which you recieved that letter from from are very well know and are built in to just about any blocklist now so chances are this is good case where if you had been using something you may have never gotten that letter.
As far as having a blocker in a bt client I use AZ with SafePeer. I also use EMule with the built in blocker and have BlocklistManager as well in case I want to update and PG as well although and I dont either much. I believe and prefer having a built in blocker for each app is better than secondary apps...
I do use Azureus as my client but I admit I don't use any other blocker. Slack of me I know. Would Peerguardian really work to block these people from seeing you or is it just false security. Also if I was tagged again and my ISP did pass my details over what is the likely outcome (punishment wise) bearing in mind I'm in the UK?
You sound like you have a very nice ISP. I wonder if mine is as nice.