If you want absolute privacy use a high anonymity proxy, meaning that sites you visit will not know you are using a proxy ... proxy IP = your IP (unless they have ways around it through say Java or Javascript ... there are certain workarounds using these ... so for absolute privacy keep them off most of the time). As for IRC and P2P ... you can imagine that if other people are using the same proxy as you ... there are going to be problems identifying who is who ... after all if you are using a high anonymity proxy the sites you visit will not even know that you are using a proxy ... they willl think that the proxy IP is your IP. That's where the conflicts arise

Note: The use of proxies is for privacy purposes ... although they can be used as bases of internet attacks. All authorities have to do to find you, if you did anything bad, is get the server logs off the proxy server ... most will give them willingly to the FBI, CIA ... they don't want trouble.
Yes, proxies are quite safe to use ... the server logs get deleted every once in a while ... I mean if no offenses are reported during a particular month that originate from behind a certain proxy the logs will in general be deleted. Passwords are, in general, not stored on the proxy server.
Here is a good site with lots of info on proxies:
http://www.atomintersoft.com/products/aliv...oxy/proxy-list/Use the
http://www.atomintersoft.com/products/aliv...-proxy-checker/ to get more info on a particular proxy. Make sure you check the response time ... pings higher than 400 will lag your connection quite a bit.
(I hope there is nothing wrong with me posting this ... proxies are legal right ? ... last time I checked they were .. it's just illegal to hack from them

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