I have been having problems with kTorrent not unzipping the ipfilter list that it downloads and finally came across the solution. I run gnome on my system and since kTorrent relies on a lot of kde libs and such it is only logical that it might have some issues. For anyone having problems with the ipfilter not converting make sure you have the run the following command on your machine. In my case I run Ubuntu.
sudo apt-get install kdebase-kio-plugins
If it still doesn’t work with this … umm well I dont have a fix for that.