1. Good
2. Not optimal, but not the blocking issue. (Port should be open and forwarded for best result)
3. That is a message I've never seen. Are you by coincidence using a proxy or VPN, respectively have set to use one in your µTorrent connection settings?
On the µTorrent form people suggest that the error has it's cause from Internet Security / Ant Virus software and to remove all exceptions for µTorrent first, then to allow µTorrent connections.
Another suggestion there was to run µTorrent as administrator (right mouse click on the icon, then select that way to run it, instead a double click)