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Is it possible to transfer files via a bittorrent client, in a way thats private? Maybe I have to install my own "tracker" server. Is this possible? and safe? I was looking at torrents as a general purpose solution to my file transfer problem.

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up vote 13 down vote accepted

You can set up a private tracker, but I don't think BT will suit your particular problem. BT is best suited to distributing the same large file to a large group of people; it really isn't intended to be used for sending a few files to a single person.

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You could use BT to share a few files to a few computers – Rory Feb 1 '10 at 16:11

Maybe you should have a look at this article?

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Yes it is possible with any bittorrent client that has an embedded tracker feature. uTorrent is a good choice as it is very easy on system resources.
There is a good guide and information at this FileShareFreak article:

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If you can setup a BT server why can't you set up an FTP server (did i miss something) ? :)

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