I have heard that peer guardian is not so reliable as it is easy for the companies who monitor torrents to set up with new IP addresses.
Similarly, as I understand it, encrypting will hide your traffic from the ISP (except Virgin who now deep packet inspect), it will not stop your IP address from appearing in the swarm - which is how the record companies find you anyway.
The reason they go after seeders is that it is distribution of copyrighted material which is the offence. I think the downloading bit is not straightforwardly illegal.
A proxy would be the way forward as this would hide your IP from the swarm, but is reportedly slow. And I am not actually sure how you would set it up.
You mean this right ?
http://www.detica.com/index.php?option=com_articlemanager&Itemid=266&task=display&artid=317&year=2010
Apparently its just to see the levels of illicit downloading, but what's the bet they'll be using the data for other things too.
Time to research options me things.
Does anyone here with a mac have much success using tor with transmission?