This is the "Downloads Preferences" screen, which is shown by clicking "Downloads" on the left of the Preferences window.
Location of Downloaded Files
->
C* - Put new downloads in:
(Allows you to properly organize your torrents and save time)
* Upon checking the above setting, you'll be prompted for a location to put the torrents into. This is where torrents will
download to by default. This is an excellent way to save yourself browsing for a location (likely the same one) for each
torrent. I've got mine set to a secondary hard drive in a folder named "_Active Torrents_". This is also the location
you'll want to put the files for torrents you create before you start seeding.
->
C - Always show dialog on manual add
(this allows you to alter the default location or pick and choose files)
->
U* - Move completed downloads to: -
(personal preference, good if you have limited space and for organization)
When Adding Torrents
->
U - Don't start the download automatically
(Defeats the purpose of showing the dialog box)
->
C - Show a window that displays the files inside the torrent
(to pick and choose files)
->
C* - Activate the program window
(personal preference, I like being able to instantly start the torrent)
Other Settings
->
C - Append .!ut to incomplete files
(best way to keep track of downloading files)
->
C - Prevent stand-by if there are active torrents
(keeps system from entering power saving mode)
->
C* - Pre-allocate all files
(great for saving on fragmentation and the disk health, but not for limited HDD space)
This is the "Connection Preferences" screen, which is shown by clicking "Connection" on the left of the Preferences window.
Listening Port
-> The port used for incoming connections will vary for everyone. I recommend something above 10,000 for good measure.
You'll want to make sure this port is allowed through your router and/or firewall. (See your router/firewall
documentation for instructions on how to do that.) Without having this port "open to the Internet" you will not be
connectable. Not being connectable will greatly reduce your Bittorrent speeds.
->
U - Randomize port each time µTorrent starts
(will likely make you not connectable)
->
U - Enable UPnP port mapping
(UPnP isn't a very good solution; try to manually forward the port first)
->
U* - Add µTorrent to Windows Firewall exceptions
(only check this if you use the WinXP SP2 Firewall; not advised)
Proxy Server
-> Most private trackers don't allow the use of proxy servers, so this shouldn't be used
UNLESS you know exactly what you
are doing (say on a corporate network and you need a proxy server to connect). If you know what you're doing in this area,
you don't need me to tell you how to set this up.

Bandwidth Limiting
-> "Global maximum upload rate (kB/s)" is a useful feature. Keeping in mind that your download speed is directly proportional
to your upload speed, limiting your upload just below your maximum possible speed will help your Internet performance (not
just uT) as a whole. Find out your upload from your ISP (say 384kbps), then divide it by 8 to get your kB/s (kilobytes per
second). Now shave about 20% off of this number and enter it here. For example... if you have a 384kbps upload, dividing
that by 8 gives you 48 kB/s. 48 - 20% (=8) is 40. This will give you the optimal upload cap to allow other minor tasks (email
checking, web browser AV updating, etc) to function while giving you the fattest pipe possible for upload speed.

Keep in
mind that trial and error works best. The percentage rate (20%) isn't set in stone. Use it as a starting point and try higher
and lower to see what works best for you.

->
U - Alternate upload rate when not downloading
(though it can help the above scenario, I've found it hinders)
-> "Global maximum download rate (kB/s) can also be useful, especially if you're on dial-up or a slower DSL service. Capping the
download speed using the same formula as above will allow you the necessary bandwidth to perform the other tasks mentioned.
If you have a 1.5Mbit or better ISP connection, don't worry about this (leave it as 0; unlimited). If you notice issues using
other Internet apps (like browsing the web) while downloading torrents, you can try capping your download rate here.
This is the "BitTorrent Preferences" screen, which is shown by clicking "BitTorrent" on the left of the Preferences window.
Number of Connection
-> "Global maximum number of connections" is just that - the total number of connections that BitTorrent will create across the
board. Setting this number too high will cause instability and slowness. Setting this number too low will produce the exact
same results. The number to use completely depends on your speed. The best "formula" to use is stick in whatever kbps upload
speed you have (such as 384). Again, playing with this will give you the best results, so don't be afriad to deviate from this.
-> "Maximum number of connected peers per torrent" is also one of those "grey areas" when it comes to definitive settings and
calculations/formulas. What I've found the most effective is use the number you calculated for the "Global maximum upload
rate" above (40 in my example) and double it. Again, tweak it here and there to find the sweet spot. Too high and you'll
expereince bandwidth choking. Too low and you'll find your speeds moving slowly.
-> "Number of upload slots per torrent" is, again, heavily dependant on your Internet connection. The most efficent way to calculate
this that I've found is to take that same number we doubled for "conected peers" just above (again, 40 in this example) and
divide it by 4 (10 in this example). This number should obviously
never be 0 or else you'll never connect!

For dial-up
users, 1 or 2 at most should suffice. Otherwise try the mentioned calculations and toy with it from there.
->
C - Use additional upload slots if upload speed < 90%
(waste-not want-not! Lets it use it if it's there...)
Additional BitTorrent Features
->
U - Enable DHT Network
(not allowed on private trackers - NEVER check this!)
->
U - Enable DHT for new torrents
(not allowed on private trackers - NEVER check this!)
->
C - Ask tracker for scrape information
(regularly checks the health of a torrent like seeds/leechers)
->
U - Enable Peer Exchange
(similar to DHT, it allows peers outside of the tracker to connect)
-> "IP/Hostname to report to tracker" should be left blank
UNLESS you know what you're doing.

Protocol Encryption
-> This setting allows some users to bypass
traffic shaping techniques used by some ISPs. By encryption the BitTorrent traffic,
the traffic shaping applications can't identify the traffic as BT traffic, hence it is left uncontrolled. Doesn't always
work. "Enabled" means it will attempt to encrypt the traffic, but fall back to unencrypted mode if it can't. "Forced" will
always encrypt the traffic, but won't allow the fail safe of unencrypted traffic. (Not recommended unless you have to.)
->
C - Allow incoming legacy connections
(without this you would only receive encrypted connections, very limiting)