Well, I guess I didn't explain the whole situation. I kinda don't want to make peace because if I do, then the Torians will squash a race that I trade, and get more than 1/3 of my profits, with. They only have two worlds at this point and unlike me, they don't have much of a fleet left to defend those worlds. However, they have successfully conquered 5 out of 13 of my worlds including my homeworld. And its very difficult to try to reinforce my fleets in those last two worlds of my trading partner because its across Torian territory. So far, I've been forced to retreat because my weapons aren't very effective against the Torians defenses and I don't what to do! Any ideas anyone?

At this point in your game there is no way to surmise a proper course of action without actually seeing the game. There is a lot of factors that could effect what the best strategy would be. Everything from your production ability, to tech level, to number/size/speed/weapontypes of the ships vs. yours can contribute to what you should do. The best you probably will get are some generalized strats from the various forum threads. It will be up to you to be able to put them to work for your situation. My tip and you might have already read this elsewhere, is to dictate the battles. Try to keep your self in the drivers seat, pick and choose your targets and try to be the attcker when you do engage them. If you can spit out ships at a decent rate, overwhelm them with small hulled ships, cheap to build and disposable, but you can wear them down if you can keep it up. Otherwise there's always next game  .

thanks for your help. To be honest, I never expected the computer opponents to be this smart, I play Civ 4 and its easy to find that one weakness, but not in this game

So true... But always come a time when you will be able to take on 5 AIs at the same time (not my fault I genocided 4 minor races + the Iconians within 3 months) (proposition #1: destroy all their trade route. They will be a lot less friendly to each other, and you can isolate some of them into pacivity.)

(or simply have fun rampaging)