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What are they claiming in the letters? If they are claiming to sue you what damages can really be sought? I would assume they could only sue you for the cost of the movie, however you may be able to "well I would have just rented it for 5 dollars."
I recently had a police officer at my house who made fun of my mother because she bought songs of iTunes, rather than download them illegally. I dunno, I just thought that was hilarious and wanted to point that out. (Incase you where curious why a cop was in my house talking iTunes, somebody stole my Mom's iPod and she was worried she would lose the songs she bought - not really computer savvy)
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