So I looked into it... then I unblocked it.
For those that don't know, I always surf with all cookie warnings turned on - mainly because I object to many - but not all - third party cookies on principle. Sure... show me advertising if you must - but I choose not to reveal my browsing habits to you.
So, what is s.ytimg.com?
$ whois ytimg.com Registrant: Google Inc. (DOM-1723647) 1600 Amphitheatre Parkway Mountain View CA 94043 US Domain Name: ytimg.com Registrar Name: Markmonitor.com Registrar Whois: whois.markmonitor.com Registrar Homepage: http://www.markmonitor.com Administrative Contact: DNS Admin (NIC-14290822) Google Inc. 1600 Amphitheatre Parkway Mountain View CA 94043 US dns-admin@google.com +1.6506234000 Fax- +1.6506188571 Technical Contact, Zone Contact: DNS Admin (NIC-14290820) Google Inc. 1600 Amphitheatre Parkway Mountain View CA 94043 US dns-admin@google.com +1.6506234000 Fax- +1.6506188571 Created on..............: 2007-Dec-11. Expires on..............: 2008-Dec-11. Record last updated on..: 2007-Dec-11 14:40:32. Domain servers in listed order: DNS1.SJL.YOUTUBE.COM DNS2.SJL.YOUTUBE.COM
Oh! It's a you tube domain!
$ nslookup s.ytimg.com Non-authoritative answer: s.ytimg.com canonical name = static.cache.l.google.com. Name: static.cache.l.google.com Address: 74.125.4.21
Yep, it really is, it's even got a canonical name in Google. Hmm... the name implies a cache, and the ‘yt' in ‘ytimg.com' is probably for You Tube, and if so the ‘img' probably stands for image.
A You Tube image cache? So it would seem.
A quick google URL search turns up lots of image tags that include it, I also found a couple of discussions:
Given that these references within the ytimg domain are probably being generated on the fly, I suspect that the code behind them is probably doing something with the cookies (including the obvious tracking).
So I have decided to unblock the whole ytimg.com domain, although in my case I have set the domain to "Allow for Session" in Firefox.