Dear Lanky
You can get PeerGuardian 2 from here:
http://www.methlabs.org
Also, you can connect to the block lists online and/or download and add them to the software. PG2 depends on the lists to defend your PC (I use both the online and installed block lists), you get them from here:
http://www.blocklist.org
As for issues, there are none, the software is free and there are no ads or spyware associated with this product.
I would suggest that you download and read the manual, which will give you a "feel" for this app before you use it.
I can say that there are others in this forum that are using PG2 based on my recommendation, no one yet has said anything bad about this application, which sits behind your firewall and protects port 6346.
UK Bob