Solutions for University File Sharing?

bbulzibar asks: "Indiana University, like many other Universities, is struggling to deal with P2P file sharing. At a recent meeting, faculty, staff, and administration were convinced that 'the University is going to have to take some sort of action in the future [to eliminate illegal activity on the university's network].' With no student input, I can only imagine the worst happening (limiting data transfer, suing students, taking funds out of the student technology fee). What kind of a solution could be recommended by a proactive student in order to avoid an ugly 'solution' and loss of file sharing, yet reasonable enough that the University will accept it? IU has outlined 4 options at the meeting. Your thoughts?"