ConCen

The Linux distro's Incognito and Amnesic has merged and formed "Tails" (The (Amnesic) Incognito Live System).
Version 0.10 was released January 4


Short introduction here, there is more info on their web page.

Quote:Privacy for anyone anywhere

Tails is a live CD or live USB that aims at preserving your privacy and anonymity.
It helps you to:

* use the Internet anonymously almost anywhere you go and on any computer:
all connections to the Internet are forced to go through the Tor network;
* leave no trace on the computer you're using unless you ask it explicitly;
* use state-of-the-art cryptographic tools to encrypt your files, email and instant messaging.

Tails is a live system that aims at preserving your privacy and anonymity. It helps you to use the Internet anonymously almost anywhere you go and on any computer but leave no trace using unless you ask it explicitly.

It is a complete operating-system designed to be used from a CD or a USB stick independently of the computer's original operating system. It is Free Software and based on Debian GNU/Linux.

Tails comes with several built-in applications pre-configured with security in mind: web browser, instant messaging client, email client, office suite, image and sound editor, etc.

Anonymity online through Tor

Tails relies on the Tor anonymity network to protect your privacy online: all software are configured to connect through Tor, and direct (non-anonymous) connections are blocked.

Tor is free software and an open network that helps you defend against a form of network surveillance that threatens personal freedom and privacy, confidential business activities and relationships, and state security known as traffic analysis.

Using Tails on a computer doesn't alter or depend on the operating system installed on it. So you can use it in the same way on yours, the computer of a friend or one at your local library. After removing your Tails CD or USB stick the computer can start again on its usual operating system.

Tails is configured with a special care to not use the computer's hard-disks, even if there is some swap space on it. The only storage space used by Tails is the RAM memory, which is automatically erased when the computer shuts down. So you won't leave any trace neither of the Tails system nor of what you did on the computer. That's why we call it "amnesic".
This allows you to work on sensitive documents on any computer and protect you from data recovery after shutdown. Of course, you can still explicitly save some documents to another USB or external hard-disk and take them aways for future use.

Tails also comes with a selection of tools to protect your data using strong encryption:

* Encrypt your USB sticks or external hard-disks using LUKS, the Linux standard for disk-encryption.
* Automatically encrypt with HTTPS all your communications to a number of major websites using HTTPS Everywhere, a Firefox extension developped by the Electronic Frontier Foundation.
*Encrypt and sign your emails and documents, using the de facto standard OpenPGP either from Tails email client or file browser.
* Protect your instant messaging conversations using OTR, a cryptographic tool that provides encryption, authentication and deniability.Anonymity online through Tor

They explain the limitations of their distro pretty well too.

A review of earlier version 0.7.

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Other privacy oriented linux distros under active development:
Ubuntu Privacy Remix
Privatix
Liberté Linux
Odebian (site in french only)

Still waiting for Windows Privacy Edition