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My guess is: SO includes some sort of <img src="stack exchange URL" /> right when I log in with a one-time token or something. Can somebody tell me how it actually works?

+3  A: 

The Stack Overflow blog post on Global Network Auto-Login explains how this happens. Essentially it uses HTML 5 storage combined with a central authentication site at http://stackauth.com.

Greg Hewgill
@Greg - They say on stackauth.com that Firefox 3.6+ are supported, but I'm in Firefox 3.5.13 and it works just fine. They must have back ported the storage API to Firefox 3.5. I love Firefox :)
orokusaki