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This doesn't work. If you know how many coins an output address is waiting to receive, all you need to do is look at which input address is submitting that many coins, and you have a matching.

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I've realized there's a flaw in my method which is that it's not anonymous. If someone inputs X bitcoins, and no one else outputs X bitcoins, then whoever receives X bitcoins is the same as the person who submitted X bitcoins. It's necessary that all people send the same number of bitcoins so that the mixing creates anonymity.

There is a simple solution to this, though - You could submit one "donor" address giving X bitcoins, and submit X "recipient" addresses each receiving one bitcoin. Variations abound. As long as the recipient addresses you use are not used in a way that can be statistically linked with each other you're safe.

Of course, people might contribute too many recipient addresses trying to get free money, but this can never work - the transaction would be quickly aborted.

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