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Having inaccurate information on your domain record is grounds for immediate domain revocation. That said, there ARE services out there like Domains By Proxy, ProxyOne, or SilentRegister that will act as a middle-man to hide your information from public consumption. They cost a bit more than a standard registration, and they have one major flaw...technically THEY own the domain, not you. If they want to institute a rule that prohibits customers from taking their names elsewhere amd jack their prices up to $500 a year, you will be powerless to fight it or regain control of the domain. Technically and legally, it's their domain, you're just paying to use it.
Also, these don't protect you from government snooping at all. None of the services will protect your information from government agents with a warrant, and most will hand it over WITHOUT a warrant if the domain is being utilized for illegal activities or spamming. They'll keep the average Joe from looking up your info, but that's about it.
Oh, and most country code domains can't use them at all. If you have a .US, .CX, or other similar domain, these registrars won't touch you because the NIC rules for those domains explicitly prohibit proxy registrations.
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