I've emailed Google Analytics team, but have yet to hear back. I've been meaning to add a counter to my sites anyways, so this gave me a good reason to test out a free service by StatCounter.com. These guys seem to be pretty serious with site analytics. Its good to have a backup plan. It's been just a couple of hours since I've added the codes and its already picking up more traffic than Google Analytics is reporting.
It seems like I am not the only one noticing Google Analytics being a little off.
Update (03/14/208) - I've been going back and forth with the analytics [AdWords Support] folks on the analytics issue and below is the latest update, it appears they are now aware of this issue of delayed reporting.
"Thank you for your email. I apologize for the delay in response. II am still a little skeptical, seeing that my 3/11 data is still showing up as half the volume as my daily average.
understand you would like to know why your Analytics reports show low data
and would like to know whether there has been a reporting delay.
Under normal circumstances, report data generally takes up to 24 hours to
update, but may sometimes take longer to appear in your account. We're
aware that recent report processing has been delayed, and we apologize for
any inconvenience. Please note that none of your data has been lost, and
your reports should now be updated."