I believe encryption only works if the trackers and/or peers have it enabled also. TMK, most clients have encryption options but it's set to disabled by default. So if you force it on you may be left with few peers that have it on as well and thus about the same speed as throttled by the ISP (tho certainly better than 0 I'd imagine). This is what I understand from a brief convo with a friend.
I think anyway.. my CABLE connect here is so stuipidly slow that it doesnt matter if they throttled BT cause its like 30-40k/sec max anyway (but I dont believe it is, but I havent BT'd in a long while, this is with Charter). I hear back in my college town where I will be heading in less than a month they now throttle BT traffic. So if encryption DOES work, I sure as hell ain't gonna tell my roommates. In fact if it does work well it could be a godsend. Dumb idea to clue them in on BT in the first place. They dont seem to understand it and slowing down the net (upload speed, # of connections, plus just that annoyance on 24/7...)