1.) Would it be a good idea to use a socks5 proxy in the uTorrent client?
If you're looking for anonymity and a quality service, you really need to think about paying for it. If you're going to pay for such a service you should consider a VPN, but make sure it's of the OpenVPN variety, not pptp.
2.) Should I disable DHT, or should I leave it enabled? If I have too disable it for a proxy to work, how do I disable it?
Later versions of uTorrent are supposed to support UDP via proxy, but I've heard mixed reports about it's effectiveness. Personally, I'd disable DHT and peer exchange. You also need to make sure the proxy server has UDP support.
3.) What boxes for both should I tick off, and what boxes should I untick? My guess was only to tick off the peer to peer exchange under the connection tab, but leave everything else on default?
4.) I know I have to do a port forwarding. I am using Comodo firewall (free). Should I port forward the proxy port into the firewall, but don't forward the random port?
Use fixed ports and, if necessary, create Global firewall rules to forward the ports to the utorrent application. This is in addition to creating application rules.
5.) this is the proxy site I have. It's megasocks.blogspot.com. Are they both encrypted proxies, and connectable proxies?
You'll need to ask. The chances are, for a free service, it won't be encrypted. if you want encryption, you'll need to use something like an SSH tunnel to the proxy server.
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