The tax issue is getting worse this year. I travel all over the US, Europe, Middle East and Africa for work and for 2011 I will have to pay income tax in the US as well as the country I visit. Trust me, I'm all for working under the radar.
Form 2555 and 1117 are your friends.
I've worked abroad for almost all my adult life, in Israel and now in Canada. Never paid a US penny on what I earned in either place (granted, at least in Israel the taxes were way higher than the US rate would've been).
Talk to your accountant.