Code needed for Google Analytics subdirectory tracking?

I am trying to at the possibility for bloggers to track their own (subdirectory) blogs using the Google Analytics for WPMU plugin. There is mention of a code snippet that needs to be inserted somewhere, can any more detail be given? It's not very easy to figure out.

There are a lot of admin pages showing up in the tracking results. It seems like a waste to track those. To remove tracking from all logged in administrators would be appreciated.

Also, it'd be nice to have a new version using asynchronous tracking code.