http://www.netresec.com/?page=Blog&month=2013-04&post=Detect...
http://www.netresec.com/?page=Blog&month=2013-04&post=Detect...
Not even this much, actually. Tor doesn't do any sort of protection on the traffic; it just routes it cleverly. The packets themselves are still plaintext if you're not using an encrypted protocol (e.g. HTTPS) on top of Tor.
In practice, most people use Tor through the browser bundle, which includes an HTTPS-Only extension. But if you're routing random other protocols through Tor (e.g. XMPP, BitTorrent, etc.) be aware that Tor is not doing any protection of your plaintext; that's the responsibility of your client/protocol.
Tor encrypts your traffic within the Tor network. Even if you don't encrypt, Tor does automatically so your ISP cannot see your content.
If you don't encrypt, your content will be visible to the exit node, but not to your ISP.
I helped make this diagram to demonstrate these details: