I'm trying figure out how Windows Firewall functions by experimenting with Bittorrent's add exception to windows firewall option, I deleted the entry from the Firewall options and also located that the regkeys are in HKLM/System/CurrentControlSet/Services/SharedAccess/Parameters/FirewwallPolicy but I can't figure out what registries are made when an application is added as an exception in the Windows Registry.
Any help would be much appreciated, I have googled several places but nothing helpful so far.
Don't kick yourself too hard OP, the documentation to this stuff has been long since buried behind many a paywall. I am a bit surprised that you never noticed the file in your system32 directory called "FirewallAPI.dll" in your search for an answer. If you don't have a tool to crack it open on hand then I personally recommend "DLL Export Viewer" by NirSoft: http://www.nirsoft.net/utils/dll_export_viewer.html
For that matter, just assume that anything by NirSoft has my endorsement by default. I'm not exaggerating when I say this guy is up there with Mark Russinovich in their level of understanding and ability.