Well I have been thinking of something like this and stumbled across Tor: An anonymous Internet communication system via /. Has anyone used this? What do they think?

What is it? Tor is a toolset for a wide range of organizations and people that want to improve their safety and security on the Internet. Using Tor can help you anonymize web browsing and publishing, instant messaging, IRC, SSH, and more. Tor also provides a platform on which software developers can build new applications with built-in anonymity, safety, and privacy features.

Your traffic is safer when you use Tor, because communications are bounced around a distributed network of servers, called onion routers. Instead of taking a direct route from source to destination, data packets on the Tor network take a random pathway through several servers that cover your tracks so no observer at any single point can tell where the data came from or where it’s going. This makes it hard for recipients, observers, and even the onion routers themselves to figure out who and where you are. Tor’s technology aims to provide Internet users with protection against “traffic analysis,” a form of network surveillance that threatens personal anonymity and privacy, confidential business activities and relationships, and state security.

How does it work? The solution: a distributed, anonymous network. Tor helps to reduce the risks of both simple and sophisticated traffic analysis by distributing your transactions over several places on the Internet, so no single point can link you to your destination. The idea is similar to using a twisty, hard-to-follow route in order to throw off somebody who is tailing you—and then periodically erasing your footprints. Instead of taking a direct route from source to destination, data packets on the Tor network take a random pathway through several servers that cover your tracks so no observer at any single point can tell where the data came from or where it’s going.