Does Google Cloak?

Threadwatch has a story alleging that Google uses cloaking. If true, this would be ironic because Google bans cloaking. However, I’d like to hear Google’s side to this story before assuming it’s true. Also, I think it’s easy to overreact to cloaking as a bad thing (but I’d urge Google to be consistent either way).

Thanks to Slashdot for the lead.