First, people dis category theory... then people get Gödel wrong...


First off, the notion of axioms, provability, logical deduction -- these do not deal with 'truth'. Truth only comes into play when you decide to use a 'truth valuation' -- a function that assigns to each logical statement a 'truth value'. This happens most often when you consider a specific 'structure', and you 'interpret' logical statements as saying something about your structure, calling a statement 'true' iff it's a correct statement about your structure.
(Assuming number theory is consistent) A 'model' of number theory is a structure for which each of the axioms of number theory are correct. In this model, every statement of number theory is either true or false. Any statement that can be proven will be true, and any statement that can be disproven will be false. Those that can be neither proven nor disproven could go either way.
Logical theories can be 'complete' -- be such that all logical statements are either provable or disprovable. It's easy to construct trivial examples. For example, consider any model of number theory; we can take the set of all correct statements about this model and use them as the axioms for a logical theory. Gödel's incompleteness theorem says that if we use this trick, there doesn't exist any algorithmic method for identifying whether a statement is or isn't an axiom.
There are nontrivial examples of complete theories. (First-order) Euclidean geometry is a wonderful example (see Tarski's axioms for Euclidean geometry). Equivalently, the theory of real number arithmetic is also complete (see the axioms for a real closed field). Gödel's theorem, in this case, tells us that these theories are incapable of talking about number theory.
More explicitly -- you cannot use the arithmetic real numbers to ask question
Given a real numebr x, is it an integer?
The basic idea of Gödel's proof is actally somewhat straightforward, and comes in several guises. The one I can state off the top of my head goes as follows:
* Describe how to do text processing with integer arithmetic
* Show how to use text processing to simulate the operation of a computer
* Write down the condition Halt(p) that expresses whether the program p ever finishes
* Write a program that is capable of computing Halt(p) whenever Halt(p) is provable or disprovable
* Invoke the fact, in general, the halting problem is not computable