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Here is a solid article from the NY Times about maintaining some level of privacy when using the internet.  It covers tools and methods

The bottom line:

"Companies like Google are creating these enormous databases using your personal information,” said Paul Hill, senior consultant withSystemExperts, a network security company in Sudbury, Mass. “They may have the best of intentions now, but who knows what they will look like 20 years from now, and by then it will be too late to take it all back.”

“I have nothing to hide, but I’m uncomfortable with what we give away"