You don't *have* to set port forwarding for BT to work, but it works alot better if you do... as without it other peers cant start a connection with you, you have to initiate the connection (and if they don't have port forwarding set, the clients cant connect to each other).
If you have Upnp enabled on your router, Azureus will set port forwarding for you. however, nearly every security guide advises you to disable Upnp on your router...





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although many of the bit torrent clients available do make use of it to configure the routers port forwarding.



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