Jim MacLeod discusses using iptables, the Linux kernel firewall, in creative ways beyond basic port blocking. He describes using recency tables to implement port knocking, reverse port knocking, and log suppression. He also discusses using XML policies, policy versioning through comments, and expanding iptables' capabilities through techniques like FWMARK and pattern matching to implement more advanced firewall logic and functions. The talk aims to demonstrate overcoming iptables limitations and show "right ways" to solve problems within the firewall.