http://en.wikipedia.org/wiki/Steganography
Properly used, good steganographic software will hide your use of encryption. Ideally, your communication stream will seem perfectly innocuous to all observers.
Of course, in real life nothing is perfect. So there's always a chance your use of encryption will be detected. But using steganography properly should still reduce that chance to well below that of obviously encrypted systems like TOR, Freenet, etc.
Also, just as importantly, the more people use steganography, the greater the cost of widespread monitoring will become.
As pointed out in other replies in this thread, when you use regular encryption or systems like TOR, you're effectively raising a big red flag for anyone who cares to monitor your communication. So detection is really easy.
But if you use steganography, the snoopers will have to work much harder to even stand a chance of detecting that there's anything unusual about your communication. Multiply this by thousands or millions of people using steganography (especially if it's embedded in huge data transfers, like video streams) and the resource drain for effective, widespread monitoring could become unsustainable.
Right now the snoopers can go after the low-hanging fruit of obviously encrypted communications, and then maybe use rubber hose cryptanalysis to decrypt it, or simply block it. Steganography has the potential change the game drastically.
Here's some steganographic software for you:
http://freshmeat.net/search/?q=steganography§ion=pro...