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If your website is subject to five million pageviews or less per month, you're welcome to join Google Analytics by Google (durh). It's brand new (as of a few hours ago) and is completely free to use if you get less than 5 million pageviews per month (unless you're an AdWords member, any AdWords member gets unlimited pageviews). You're welcome to monitor up to 50 sites. You simply insert a code like thee below between your <head>, <meta> tags and your </head> tag:
<script src="http://www.google-analytics.com/urchin.js" type="text/javascript">
</script>
<script type="text/javascript">
_uacct = "UA-#####-#";
urchinTracker();
</script>
</head>

On an obvious look, the program is powered by Urchin statistics (a popular statistics tool some hosts have included in Cpanel). So for anyone whose host doesn't have Urchin on their server, Google Analytics maybe helpful for you. Plus, who knows if Google somehow added to Urchin and included some extra features that Urchin doesn't normally come with - I don't know.

Anyways, check it out and let WD&P know what you think. Remember, statistics aren't instant - they're updated once an hour.

-Andy

Google Analytics.
There's no such thing as free lunch I seem to recall. What's the catch? You will be collecting massive amounts of data on the users, browsers, geographic locations, keywords etc. How long is this data stored, are you using it to enhance your advertising-program? Will it stay free? The javascript is it completely passive or does it try to store something on the visitor's computer?
Before installing something like this, I owe it to my users to make sure I live up to my privacy promises to them.

cheers,
Kimmo