Apart from using anonymous proxy servers, there are other extra steps which you should make to make sure that your online activities cannot be tracked.
1. Use an encrypted connection
2. Configure your browser to Delete Cookies after each session (I'd recommend that you use Firefox Web Browser… as it is easier to configure)
3. Configure your browser to disable Active Content, Javascript and Java
Good Luck 
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It's not 100% safe but it does hide your real IP which prevents people from tracking your online activities. Although proxy servers does a good job making sure your online activities are not tracked… there are many other variables which allows a person to track your online activities such as trojans, spywayre, adwares, etc.
Before choosing an anonymous proxy server, try and do a little research. Search on the net and find out whether there are other people using the same proxy server and whether that had any problems with it.
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There are many places in the world wide web where you can actually buy anonymous proxy servers. Most of the time you can get it for free but if you want a more anonymous and secured online browsing experience, I suggest you find a software that will hide your IP on the fly.
Here is a very well known and popular free proxy site:
http://www.shadowsurf.com/
Enjoy!
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There are many software that can encrypt files. Even though there are paid softwares but sometimes the best software is a free software. Why waste money on paid softwares when you can the same protection by using a free software? One of the most popular free and open source software is "AxCrypt File Encryption Software" @ http://axcrypt.sourceforge.net/. The software currently works perfectly with Windows 98/ME/NT/2K/XP. The software also supports AES-128 File Encryption.
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To answer the questions "Why Should I Encrypt My Files?", you must first ask yourself whether your computer is storing any *sensitive* data such as social security numbers, passwords, financial data, etc. If yes, then I would definitely recommend you to encrypt all your *sensitive* files. Data encryption can eliminate any possibility of your data from being easily stolen or hijacked.
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Not many people know this but paper mail is much more secure than an email. Why? Because an email transmits data electronically and can be accessed by anyone on the internet and the data can be *hijacked* without the sender and recipient knowing.
There are many programs that can help you encrypt your eamils but one of the most popular and widely used program is PGP which stands for "Pretty Good Privacy".
In a nutshell, if you're concerned that someone might be snooping into your emails, it is best that you should encrypt your emails. In the end, it all depends on you
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Most people think when a data or file is encrypted, the data is safe and "hack proof". The fact is that encryption only makes it harder for unauthorized personnel to access important files and information. There are many different algorithms used for encryption. Most of the time, the data is more secured when a more complex algorithm is used but encryption can be broken if a hacker can identify what algorithm that was used.
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Most of the time, people use encryption to make computer systems more secure. There are many encryption and cryptographic software.. both paid and free. In the next few days, I'll be covering some of the ways of how encryption can help secure your system and whether you should use paid or free encryption software.
Stay tuned…
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