I'm bringing this thread back from the past to post more up to date information for those members who might be affected by this Phorm/Webwise issue.
This link:
BT, Webwise and Phorm: What you need to know has a pretty good comprehensive list of relevant links and information about Webwise.
There is also a protest meeting being organised at BTs AGM at the Barbican on the 16th of July (if you are interested click the "About" link at the top of the page to get the details)
On a personal level I've now left BT and moved to another ISP who say they have no intention of implementing Phorm, well I hope it's true but time will tell.
The interception of customer's search requests that BT have already- apparently illegally-carried out and at first denied, then reluctantly admitted, so far have gone unpunished but there is at least one court case pending.
I don't expect anyone to actually read through this:
Virgin Media Phorm Webwise Adverts [Updated: See Post No. 1, 77, 102 & 797] - Cable Forum thread but if you did there is more than enough background information there to keep you busy for a week
It's a 700+ page thread with 10,000 posts!