When googlebot crawls our page it seems to register it's own visits on the analytics pages. We get thousands of visits all of a sudden and it really skews our reports.

Is there any way to block all googlebot activity? (regardless of IP and domain)

Is Googlebot actually parsing and executing JavaScript now? If not, I don't see how this could happen. How can you be sure it's Googlebot?

My Analytics never records Googlebot .. I have the same doubt as Tony ...

In my stats it does not appear. Are you sure it's the googlebot?
Anyway, you can make the GA script conditional with PHP or the language you use. By reading the header you can identify users and bots :)