He should have used peerguardian.
http://www.methlabs.org/methlabs.htm
I would never take the time to download a movie anyway, but a program like this will protect you from being identified in most cases.
I wouldn't have admitted that he did it.... who knows, they might try to use that against you if they decide to file a lawsuit.
Should have said you have a wireless network and that maybe someone was logging in without your knowledge, and assure them that it wouldn't happen again. Or something like that.
