phishphreek80, your school is pretty lenient. I think it depends on the admin at the school and the standard of security they hold. I know here at the college I'm at they limit access (or did) to IMs and you have a quota of space to use (avoids storing of "warez"). Students are given shell accounts only if their class requires it otherwise they install the OS required by the class (or their own if there isn't a requirement) and store stuff there.

And you're only paying for the right to use the bandwidth. That doesn't mean you own that resource. It's stilll the school that is held responsible if you go and do something illegal. Hence, the reason that many schools have AUPs.

That said, if the ISP is blocking access, have you looked at other ISPs or is this a national thing? If it is, the half-police state or not, there will be little that you can do as it is quite likely the proxy is farther up the pipe than the ISP. I wonder if some of the blocking is because of the amount of pr0n spams you get with those "free" email services. Have you looked at other web-based email services?