So, does HideMyIp work in the long term?
Unlike other software, Proxy Switcher pro for example, HideMyIp uses its own ip's on its own servers. Instead of trawling the net for fresh ones each day.
This has a huge positive in that the 'fake' ip's can be totally managed and tuned by the owners. The limit to the number of these ip's available is limited only by the owners ability to invest in new servers strategically placed across the globe and quantity of ip's leased. Which of course is limited by the amount of customers using the service.

Now for the not so positive. Most large web sites maintain a 'black list' of ip addresses. In particular, any proxies. Even AOL have been banned in the past because of their use of proxy.
So as a web site owner it would be a very simple task to use software like HideMyIp, copy the ip's it uses (they are a set number that never change) and add them to the sites black list. Maybe not to ban, but worse than that, to apply certain sanctions or tracking to for suspected something or other.

You merrily carry on using the faked ip's totally oblivious to the fact of the site your visiting knowing exactly what your up to and tracking your every move. If it looks suspect, that ip is banned. Bearing in mind that this is done completely automatically by clever server side filtering software, you better not think of doing anything naughty, or you will lose your account - promptly!
So if you are thinking of using HideMyIp for something not quite legal, be warned. You can be caught.
Try doing some routine searches on search engines while switching ip's, you will soon come across a few 'forbidden' warnings. All it takes is one rouge user to get an ip or several of them, flagged as suspect or banned.
That I see as the weak point in this or any similar software. Though it does appear the management keep a reasonably clean set of ip's.

Other than that, for normal legal anon browsing, HideMyIp is by far the best piece of kit on the market toady for the ordinary home surfer.

Good advice, Doc, on the illegal use of our software.

What some websites do is maintain a list of IP's that they are aware are on a proxy server, so the website may disallow the use of that IP. Hide My IP does change its IP's on an irregular and unnounced schedule. We do this partially because a few bad apples do abuse our IP's causing them to be on such a list at the expense of the majority of our customers who do use Hide My IP for legitimate reasons.

Yes, we maintain such a list of suspect IP's, running several global servers and many SEO marketing accounts, you cant be to secure against attacks.

Though I still feel the weak point is the <> regular list of IP's in use. If I were a tech at Yahoo or Facebook for example, it would take very little to list the 130 premium ips presently on offer and simply add them to the 'suspect' list. As one or two gaming sites have had to do after getting their fingers burnt by the FBI. Ignorance was not an acceptable excuse.

Having said all that, there are an increasing number of 'anon' surfers which can represent a considerable percentage of a popular sites visitors. So banning proxies could be a shot in the foot for some operatives.

From a professional view point, I think Hide My Ip 2008 is extremely good software, from a good company which does what it says on the box. The long term success or failure of it depends on reaching that magic balance of clients verses available ip's. Which ultimately depends on marketing skills, especially SEO marketing. If you are able to give it that huge push, then with your present stock and additional purchasing power, Hide My Ip could possibly become the 'defacto' utility for anon surfing. Wish I had thought of it!