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1) Are the ads specifically targeted at the cookie in your browser? If my Nan uses one PC in the house and I use the other will her cookery related surfing affect the ads served to me?
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Yes they are, and no they won't.
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Which is fine unless users are sharing a single user account and browser profile.
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2) Can the opt out be done on an IP/account basis? If I want to opt out of the service I assume I'm not going to have to opt out in every browser on every PC that use my IP?
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No it can't, and yes, you will.
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diagrams The bigger question is, why would the ISP even do packet inspection on every request instead of simply creating a VLAN trunk (or equiv) to bypass the system for those who opted out?
I'm cooked
but there's some reading material
here
---------- Post added at 22:16 ---------- Previous post was at 22:14 ----------
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What about the previously mentioned advice of blocking the cookie from oix.net? If you have a router capable of blocking access to domains then you would be covered for any machine that connected to your home network.
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It's an opt out system, no cookie and phorm get your clickstream. See the register article (with diagrams) I linked above.