hey, they are still around. they are called JAP
This explains what they are:
http://en.wikipedia.org/wiki/Java_Anon_Proxy
This is the web site:
http://anon.inf.tu-dresden.de/index_en.html
I would also recommend using these in some combination with the above:
Privoxy
http://www.privoxy.org/
It is basically a proxy manager. You feed in a list of public proxies, and it rotates through. JAP works in a similar way, accept that the entire server system is setup to to mix encrypted connections in such a way that no one computer can know what the other is doing. Privoxy is just a bunch of diffrent proxies addresses.
If you use firefox there are a whole system of proxies and security plugins you can use, that will make managing proxies and turning them off and on easier.
You should also look in to SSH for encrypted tunneling:
http://www.openssh.com/
Besides SSH for sensitive systems work, I don't really bother with most of this stuff. I know how to use it, but simply don't feel a need to use it. If I have something that sensitive, then I know much more effective methods to go way off the reservation. As my life stands, I don't see any use for it.
This stuff above is more for stopping pedestrian snooping and stroking your paranoid ego than to provide real security. It is effective, just don't be lulled in to false sense of security because you are using it. If anything the use of it will make you more of target, if you are doing anything to get that sort of attention in the first place.
Also, there are bunch of methods to completely defeat and track someone using the above programs. If someone is set on getting you at that level, you need much more help than I can provide.