yup, its not really too difficult, especially if you're willing to pay millions to hire someone who knows how. Some clients even just display the IPs of all the people connected.
The thing is, its not technically illegal. If you get a nasty letter from you ISP, check Suprnova, they have a special forum set up for how to deal with threats and so forth.
edit: from what I remember, its enough to just say "oops, yeah there was some spyware/viruses on my computer, but now I ran Norton and it should be OK. I have no idea what sort of deranged criminal would pirate copyrighted materials, it certainly wasn't me." See, by acting all stupid, we're talking like typical housewife level here, you create the impression that you barely know how to turn on the computer, much less all this stuff about bits and torrents and so on. It must have been those hackers, hacking into the mainframe and using my computer to download illegal software. My friend told me about this, she says they can get into your computer and steal your megahertz. They're probably Russian, you know, I never did trust them....
well, you get the idea. Like I said, check the Suprnova forums.