Many thanks to you for your prompt reply. Any additional thoughts or experience will help. They have made it clear that they have my number. I am being asked to ackowledge the email and change the activity on my account to bring it into line with their established limits.
I had considered telling them I was a gamer (like Jameskg says)... or, maybe saying that my wireless router was unsecured... I am just too honest (but I do not want to be stupid).
I actually have been working really hard to stay with non-copywritten, band-friendly sites like Traders Den, Live Internet Archive and btree. So, I am not worried about that. I guess I can let them know if they seem interested.
As you suggest, I will explore the Contract to see if there are limits. But, I am sure they can always play the "that's our policy" card whenever they feel like it. Also, I will share what I find out about the dangers of downloading from their link and let you know, too! I am guessing it might be causing blindness in some cases
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