There is an option for "Protocal Encryption" under the Network settings. Just change it to enabled.
It's main use is to fight ISP throttling but anyone who has the option of it should have it checked. This won't stop you from getting letters though. The movie studios get your IP because they are monitoring the files, not your download/upload streams. So they will still get your IP and they will still contact your ISP.
You need something like PeerGuardian2 which tries and filters out seeders/leechers themselves.
But definitely enable your encryption just in case your ISP is slowing your torrent speeds.
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