can anybody help me please, recently i found out that isp's are watching file sharers and taking action at those who get caught, does anybody know how to encrypt your ip address to help make sure you are less likely to get caught?

You could, but there would be little point.
If you order a pizza and give a false address, the pizza does not end up with you.
If you order a piece of music and supply a fake IP address - it vanishes.

If your ISP blocks or reduces P2P, choose another ISP. They are not all alike.