Using a proxy server will work just fine, use a proxy from a different country to be safer.
ummm, i dont think you understand how the internet works :/ its impossible to hide your IP address, as w/o it you cant connect to any other computer/server on the internet... you can use a proxy or VPN to hide your real ip address from the server you are connecting to, BUT that proxy/vpn server will see everything you do and keep logs. they arnt going to risk a lawsuit to save you.... they will turn over all your personal information and everything you have ever done on their network over w/o hesitation. 99.999% of free proxies and vpn are either run by hackers or government agencies. so yeah.... doing that is far worse... a paid vpn is good, but it wont help you commit any illegal activities over the internet.
Try the VPN Hotspot Shield You could pay per month or be free, but have ads on the pages.
There are free proxy websites around, which hide your IP address, but they often don't work well with websites with flash or videos etc. The best free one to my knowledge is hide my *** .com I use an application called Hide My IP, which works better, as it obscures your IP before even opening a webpage, so there is less interference with the website's contents. hide-my-ip.com