If you have some time, listen to these audio interviews with Matt Cutts. -works for google. They get into a lot of subjects related to SEO but Matt does mention that Google is capable of reading through javascript. Cloaking is also mentioned.
http://www.e-marketing-news.co.uk/au...utts/part1.mp3
http://www.e-marketing-news.co.uk/au...utts/part2.mp3
