There are people that do some sort of procedure with lead that they claim gets rid of Ayin Hara. Is this hocus pocus or true?
Obviously you won't find any clear proof one way or the other. I'll just mention that the Tzemach Tzedek (OC siman 38) entertains the possibility that this procedure is effective for certain ailments, to the extent that he allows it to be performed on Shabbos (because of the possibility that it might save a life).
For a discussion about which people do this today: http://www.bhol-forums.co.il/topic.asp?topic_id=1671743&forum_id=771
I know of no source within Kabbalistic texts that state to do this.
Specifically when I asked Rav Kaduri ZTz"L about someone who did it in Jerusalem, he said it was ossur as a Kabbalah Maasit.
Second to that, the "procedure" that they do to remove the Ayin HaRa and prove that it has been removed is an old stage trick, my wife showed me how it was done.
A much simpler and often cheaper way to remove the Ayin Hara that is found both in the Kitvei HaAri as well as in other texts is to carry a piece of a plant called "Ruda". Many Mekubalim carry a piece that has been laminated. Also there is to hold a packet of salt in one's hand on the first day of Sefirat HaOmer, when saying the Omer, and then carrying that for the rest of the year.
If the procedure was done and the evil eye was "done away with" we can't scientifically prove to attribute it to the procedure, however, we do know that such similar procedures were performed and many rabbis allowed it done and did not reject them as mere hocus pocus.
The Bet Yosef (YD 179, end) discusses a practice to fill the house with incense and quotes Rashba who forbids it because it is as if bringing incense to the evil spirits (cf. Shulhan Aruch YD 179:19). But, Rashba adds that if doing so to expunge of an evil eye it is permitted.
R. Grossman (Ve-darashta Ve-hakarta vol. 2 YD no. 22) discusses the lead practice and, after he concludes that it is permissible to do, he reports that "it is a verified practice" and he personally knew distinguished people who would have the procedure performed for them.
As Mekubal said it was deemed to be Kabbala Maasit which was Asured by Rav Chaim Vital through the Ari 450 years ago. My cousin asked this question to Rav Yaakov Moshe Hilel, and he said it was Kabala Maasit. Once, I found some in my house and asked my Rav what to do, he said to through it out.
I asked my rabbi, a very good Chabad rabbi, about how to ward off an ayin hara and he said, "The best way to ward off an ayin hara is to ignore it." I am Ashkenazi and I was buying hamsas, wearing red strings, etc., until my rabbi told me I could "go crazy" doing such things and to trust that Hashem is protecting me. Yet, still, I believe it is a good idea not to tell people of something, i.e., a planned journey, etc., until it is "set in stone." In general, envious people will try to ruin your life because they are jealous of you. Even your fellow Jews, sometimes. The goyim are jealous of Jews and that's where the anti-Semitism starts from. May we only hear good things. Kol Tov!