The Bar Code King has the skinny on taqija:
Dissimulation - TaqijaMore at the link which is sourced from the Danish Grand Mosque, No Thanks. While you're there, check out the death penalty for Islamic apostates. (Via Rantburg).
Islam's attitude towards lying and honoring agreements with non-Muslims.
This conclusion is taken from "The 4th Conference of Islamic Research" at Al Azar University in Cairo, 1970. The teachings at Al Azar University is normative for all Sunni Muslims. For Shiites it is Qum in Iran.
Taqija
The expression taqija means to dissimulate and is used when serving the propagation of Islam or benefitting a Muslim compared to 'infidels'. Lying to 'infidels' is officially acknowledged and is religiously motivated.
Lying is okay
In essence taqija means that a Muslim is allowed to hide his or her intentions in a difficult situation. For instance in regard to Koran interpretations, the more mellow verses are emphasized towards people with no thorough knowledge of the matter, and threatening, harsh verses are hidden.