This happened to me with Cox as well, except it was the Business Software Assocation that contacted Cox because I downloaded and was seeding MS Visual Studio .NET Pro... What's surprising is my parent's really didn't overreact like I though they would. My dad just said "Mike, you know better than to steal from Microsoft."
So I just *deleted* the torrent and illegal content from my HDD like the Cox e-mail said to... aka just stopped seeding it
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Oh, this incident had no effect on the amount of copyrighted material I pirate. For me, once a pirate, always a pirate.