Connection encryption

[steamkey at post.cz]

Hello!

I just switched from Skype to Pidgin, and I had a question.
I use XMPP / Jabber with Pidgin. Is my connection fully encrypted? My friend
list, messages and everything? So users on my network can't spy on me? 
There's connection security in advanced XMPP account settings. Is that it? 
Require encryption or use old style SSL. "Require encryption" uses SSL3.0 or
TLS1.1 / 1.2 and old style SSL uses old SSL?

I know there's a OTR encryption for messages, so my XMPP / Jabber server 
provider, government or anyone else can't read my messages.

I'm worrying more about people on my LAN network, or some hacker around here
reading my messages and seeing who I am chatting with.
So if I use "require connection", my connection is fully encrypted? 
Messages? Friend list? Everything? Even without OTR? Only that XMPP server 
provider can read them, and maybe government?

Also only I have a access to my router with a strong password, if that 
matters somehow.

I just wonder if Pidgin with Jabber / XMPP uses any encryption at all, like 
Skype, and only Microsoft and government can read them. Some IM clients have
encryption settings in the IM settings. You have them in account settings. 
Any difference?

I guess it depends on my XMPP provider, right? Anyway, their security rating
is A / A on xmpp.net

I'm sorry if my question is confusing.

I hope you will answer, it's very important. So are my messages encrypted 
through SSL / TLS > AES? And also my friend list? Who am I chatting with? 
Everything? (I know my XMPP provider can access them).

Thank you in advance, and sorry for my english.
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