You are probably aware that advertising agencies and others like Google use what are called tracking cookies to create a record of what sites you visit. I have posted a number of times on the subject (search “cookies” to see more). Blocking tracking cookies is quite easy and most anti-spyware programs sniff them out and remove them. However, there is another type of tracking method that is far less familiar and is beginning to be used more. This method uses the ubiquitous Adobe/Macromedia Flash presentations to bypass the usual cookie blocking methods. I wrote an article about this method some time ago but the subject remains little noticed and I am revisiting it. I previously wrote (slightly updated):
To evade standard methods of cookie control, a method called persistent identification element (PIE) is being tried. The current version uses a feature of the Adobe/Macromedia Flash application called local Shared Objects. Use of Flash movies on Web pages is widespread and a very large majority of Web viewers have Flash players on their systems. Internet Explorer comes with a Flash ActiveX component and plug-ins are easily available for the other major browsers.Thus most Web viewers can be reached by this new method.
Skipping the technical details, here is a brief idea of how the method works. When a Web page contains an ad in Flash format that is appropriately coded, a file can be placed on the viewer’s computer that functions much like a cookie. However, none of the present standard methods of cookie control will detect the file. This type of file has the extension SOL and can be located in a variety of places. In Windows XP they are usually in a sub-directory of
C:\Documents and Settings\{User name}\Application Data\Macromedia\Flash Player
You can find the tracking elements that are on your computer by searching *.SOL and you can then delete the files or you can use the command line to remove them. This will not prevent the planting of tracking elements on your computer in the future, however. Both the deletion of existing tracking elements and the prevention of any more can be accomplished at some little-known Adobe Web pages. Something called the Global Storage Settings Panel can be used to prevent future tracking. On that page you will find a settings manager that will change settings directly to the Flash player on your computer. It is shown in the figure below:

To prevent tracking elements from being placed on your computer by sites yet unvisited, you slide the bar all the way left and remove the check by “Allow third party Flash content…”
You can also remove existing tracking files and manage which sites are allowed. Across the top of the panel shown in the figure above is a row of icons. Clicking the one on far right opens the next figure shown below. The clicked icon is marked with red. This panel shows the stored tracking files that are already on your computer and gives you options for deleting them or configuring any sites that you wish to allow.

It’s possible that a bank or other institution may be using the Flash file as part of its security procedure. In that case, deleting the file will mean having to re-enter some information, which is similar to what happens when you delete a password cookie. The Adobe site gives you the option to allow specific sites while blocking others.