So I've been using PG2 for a while now and I've recently become skeptical to whether or not its actually doing anything. Before, like 6 months ago when I downloaded things, blocked IPs would show up all the time in the log. When I checked the history there were always quite a few blocked IPs.

Now when I download things, mainly torrents, it spams a bunch of IPs like I expect it should with torrents, but nothing EVER is on the blocked IP history. I've checked the list manager to make sure all the lists are there and I always update the lists... So how can I test peergaurdian? Any advice is appreciated, hopefully one of you guys would have used PG2 before and know what I'm talking about.

Maybe your torrent program is now in peer to peer mode (or whatever it's called) where you're only connecting to other users like you and not to download servers. The download servers are the one's which get blacklisted.

When they stopped development on Peerguardian, someone else took the source and kept working on it, released as Peerblock, which is now much more updated and functional than peerguardian is. Try using Peerblock and see how that works out.
When I torrent there's always tons of things listed in the block list- so much that I'm sure most are not actually anti-P2P IP's, but I suppose it's always best to lean on the side of caution.