You can clear your cookies (or just set them to blocked) if you don't like this tracking.
Fraid not. Google can track you without that.
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They can't as long as you block the cookies and are not logged into Google in any way. If you're logged in in some way (mail, blogspot, whatever) it doesn't matter if you block cookies since they track you on your session.
But you have to block cookies, you have to tell Flash to not to accept cookies, you have to not be logged in, etc, etc, etc. It's kind of a pain but doable.