Cryptmagic that is one of the pitfalls of running an unofficial release of anything, the unknowns. Now granted one may still experience the same problems with the official release as well.
First question what version of Kazaa are you running? I hope its the lite version, dunno if it the latest but this is what I'm running "KazaaLite.v2.4.3e".
The reason why I ask is because this is about as safe as safe can be using a p2p and keeping the RIAA off your back and also being trojan, ad-aware, spybot free.
Anyhow I digress, one of the more important features of the sp2 release is its new enhanced "Firewall" check to see if its turned on, if so either turn it off or add the port# you'll be using with Kazaa. It's just a guess on part but worth a looksie.