Atlast got utorrent to work.
The culprit was Zonealarm..
I was using Zonealarm sometime before but later uninstalled and started using Tiny firewall.
Zonealarm has an issue that it does not uninstall completely and needs manual deletion on some files to get rid of it completely otherwise it will keep blocking internet access.
To unistall manually use the steps on the below link.
http://nh2.nohold.net/noHoldCust25/P...tallNonNT.html

Thanks everybody for your help.
Happy Sharing...