Why are you blocking liveleak.com? If this is your PC brigade crusade why haven't you blocked facebook for streaming the video from beginning to end? Your knee jerk reaction does nothing to anyone motivated. See: The Streisand effect.
Is this a government blocking initiative or your own??
You might want to tone down the outrage, Telstra has to operate within the laws of Australia. It also can do as it pleases within those boundry's. You have solved your problem by changing your DNS, that's good, I suppose. The irony of your knee-jerk reaction to the blocking of this site is somewhat amusing.