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I don't think encryption works in this case. What I believe encryption does is that it bypasses any type of torrent blocking that ISP's do (e.g., completely block out the torrent or slow it down). With torrents, you can never mask your IP, unless you use proxies but those are never really 100%. The reason your e-mail is that someone reported you (e.g., RIAA / MPAA). That is someone from the RIAA/MPAA also were connected in the swarm that you were downloading from, and just gathered all the e-mails that they were being downloaded from and sent the ISP the e-mail.
Someone mentioned Peer Guardian, that may work since it will block out known piracy agency IP's from connecting to your swarm. Another sure way is sign up for Private Torrent sites since they tend to ignore these sites as compared to the large public torrent sites (piratebay, mininova, etc...). Or you can sign for for Shaw haha, during my years I have never been given an e-mail nor have I known anyone to get e-mails like what Telus gives out, they seem to protect your identity more than Telus does.
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