What are “torrents” in relation to gaming

In the context of online games, a micro-transaction is the exchange of real world money for some in-game good or service. Most often these are small purchases in the range of $1 to $5.

Some game designers use micro-transactions as a way for players to further customize and personalize their characters, leaving out the purchase of in-game items that may affect a players stats and game balance.

Micro-transactions are popular among free games because they provide the developer with a source of revenue, while allowing players to play through much (or all) of the game for free. One benefit of this model is that it can lead to a larger player base than would be possible with a standard pay to play model.

Interp is short for interpolation, a computer science term (technically math, but that's unrelated).

In Counter-Strike and CS Source the server interpolates based on your previous position your next position. Since the server determines 'where' you are the decision of this calculation determines where you can get hit from. Likewise your client also makes a similar calculation as to where you and other players are. The result is by tweaking the interpolation coefficients you can trick your client into showing the various players in different positions than the server believes them to be.

Since interpolation is a guess, and its effect changes your viewing experience, players often change it for optimal performance. It is possible to change it to cheat, but since interpolation errors occur regardless it is harder to detect. In reality anyone accusing another person of interp is just accusing them of cheating; often an inane accusation.

A longer discussion of interpolation techniques can be found here, however I'll give you a simple example of linear interpolation:

y_n=y₀+ n * dy / dt

As the acceleration in the y direction may have changed between y₀ and y_n it is possible this equation produces inaccurate results. To prevent this often times low values of t are used, in CS this is typically .01, though some players set it to .009