Ok let me try to make this simple for you.
What you see in that log window are all machines which have either tried to contact you OR be contacted by you that are on the blocklist.
You can't see "hack attempts". You're just seeing connection requests.
When you connect to ... say ... kazaa, and are downloading a file... there are maybe 20 other people who have that file. If one of those people has an IP in the blocked range, the kazaa software will keep trying to reach him because it is too stupid to see that the connection is blocked. (This is why eMule, for example, has blocklists built in - makes the program less stupid!)
Now, if you're SHARING a file (I'm guessing you have some files shared), then the Kazaa server lets people know that you have those files. Their kazaa software will, if they have selected to get those files, repeatedly try to contact you (and everyone else who has the file) in order to download it.
So when you see Machine X trying over and over to connect to your Kazaa port, that's not a hacking attempt. That's someone on Machine X who wants your Britney Spears "Live at the Teen Choice Awards" video clips.
In your case, that guy in the U.S. Navy probably likes looking at the same kind of porn as you, and wants to download some of it from your kazaa shared directory, that's all.
Peer Guardian is really effective, but only as effective as the blocklists. if some IP gets onto the list and it's NOT a bad IP, then Peer Guardian actually HINDERS you. But for the most part it works very well.