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You should seriously consider it. This is one of those situations where you're either part of the solution or part of the problem. Your system will get owned and you will probably not know it. Many nasty things can result, from simply using your computer to send spam, to being part of a bot herd that is used to extort money from companies, and even to hosting things like pirated music & software, and child pornography.
As to your comment on hacking back - first, I highly doubt you have that capability, second, the apparent source of the attack is almost certianly going to be some poor sap's computer who also didn't think it was important to have a/v & firewalls.
Even if I did not keep sensitive stuff on my PC, to me, it's not worth the risk of having my door kicked in and my house searched because I am accused of hosting warez, porn, or hacking someone else.
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True I never thought of that. No I have a firewall and A/V it never got passed my firewall on this computer on the other Vista saw it or it virus program and killed it. I know how to hack computers. But you are right I never thought of like child pornography probly the worst one on that list.