Incognito Live System is a Debian-based live CD offering complete Internet anonymity for the user. Version 0.7 was released today and is available for free download. What's new

Changes

Notable changes include:

Tor 0.2.1.30

Protecting against memory recovery: new, safer way to wipe memory on shutdown which is now also used when the boot media is physically removed.

Hardware support
printers: install more printer drivers, allow the default user to manage more kinds of printers
3G: support mobile broadband devices such as 3G USB dongles
wireless: install Atheros and Broadcom firmwares
scanner and multi-function peripherals: better support

Iceweasel
install the HTTPS Everywhere extension
many Anonymity Set preservation enhancements, mostly inspired by the Tor Browser Bundle configuration
support FTP, thanks to FoxyProxy

Other software
user-friendly encryption support: install gnome-disk-utility (Palimpsest) and Seahorse plugins
add opt-in i2p support with Iceweasel integration through FoxyProxy
optionally install TrueCrypt at boot time to allow users of the (old and now unsupported) Incognito live system to access the data on previously created media; this is not meant to be used to create new TrueCrypt media (more information)
make better use of battery-powered hardware
replace xsane with simple-scan which is part of GNOME and way easier to use
install scribus-ng instead of scribus: more features, less bugs

Firewall
drop incoming packets by default
forbid queries to DNS resolvers on the LAN
set output policy to drop (defense-in-depth)

Miscellaneous
fromiso= bugfixes
configure keyboard layout accordingly to the chosen language for Italian and Portuguese
more robust HTP time synchronization wrt. network failures; display the logs when the clock synchronization fails
disable automatic media mounting and opening to protect against a class of attacks that was recently put under the spotlights
GnuPG: default to stronger digest algorithms

Plus the usual bunch of minor bug reports and improvements.

Code:
http://dl.amnesia.boum.org/tails/stable/tails-i386-0.7/tails-i386-0.7.iso