Unfortunatly, an ISP is entirely capable of seeing exactly what you are downloading and uploading, it all goes through their linkup, afterall. Whether or not they will bother, and whether or not they have a legal right to do so without charges having been made and that sort of thing, is an entirely different question, but if they try, it isn't gonna be too hard. It doesn't take anything fancy to see what, exactly what, someone inthe same LAN as you is doing. It is rather disturbing to see one's ICQ chat appearing on your roommates computer. ISPs, believe me, can see exactly what you do unless it is encrypted.

FreeNet! Yea!