I know that it is very easy to retrace and get the IP address using a sniffer program or even a Mime.822 hotmail Add on but I need some people to tell me what I can use the IP address for once i Have it. I swear to god that this info is not going to be used for bad purposes. I work off a network and I believe that I am being monitored by an Outside source (not one of the admins). The main admin wont change my password until I give him some proof that the IP address can be used in A harmful way.
If you can help I would be extremely gracious.

There are numerous posts on this topic throughout the board. Look for it. And this should be in the Newb forum. But just cause I'm in a good mood here is an example.

Gizmo Explains

Oh Yeah notice how that thread got locked.....hmmmm

I understand that the IP address itself cannot be used to hack but once someone has the IP what can they do with a sniffer program And possibly a shell.
once a person has an IP address cant they access all your files via External source

They have to gain access to your comp in order to access your files. But with a sniffer program, they can collect copies of the packets being sent to and from your computer and put them together to look at what you have been looking at or read your IM's that is why you should use encrytion when posibble. is that what you are looking for? Onceagain though you can find this info in numerous places, it is not hard to find.
Another thing to consider if you are worrying about monitoring is that if you are on a comp that does not connect directly to the internet but throughh the LAN then the IP that the internet sees is most likely not your comps IP but the IP of the gateway. (Someone Correct me here if I am doing a lousy job of explaining this or am just plain wrong)
Also you mentioned something about changing your password. Most comps that connect directly to the internet do not have static IPs, they are "leased" to that comp from anywhere from one session to 1 week.
Now that being said changing your password will not change your IP and if someone is that determined to screw with you (which I doubt) then changing a password won't protect your account anyway. Passwords are the weakest form of protection IMHO. If a strong password was all that was needed to keep people out of a system then there would be no need for network security specialists.

One more thing if anyone was monitoring your comp usage from inside the network, I have a strong feeling your admin would know.

With cable internet, the same user could have the same ip for couple months because everyone usually leavers there computer's conected to the internet 24/7 for couple of months.

People cannot list your files and steal them without a service running that would allow them to connect and preform the action.

If you have open windows file sharing for example, all someone has to do is connect to you through Network Neighborhood over a cable line; note that this would only work should your fileshares be accessable over the web (most ISP's block the required port networkwide).

I extremely doubt you're wanting information on infecting a pc and connecting to it for being able to protect yourself, but if you are I'd reccommend reading a book ...