I guess what I don't understand is how to set up the filter to actually exclude it?

I made a file with the JS code in it and just put it the Google_Analytics folder that came with the mod...wasn't sure where to put it so I put it there.

Then Google said to create a filter....

Filter Type: Custom filter > Exclude
Filter Field: User Defined

I guess this is where I am lost. I can create the filter but as far as how to tell it to exclude computers with that cookie...I have no idea.