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totally ignore whatever is between <!-- ... -->
Which is the intended purpose. Otherwise the search engine bots would be parsing the JavaScript code. Which they don't. It's ignored.
There's an article around here discussing how Google compresses content so that it can store massive amounts of data, stripped of non-esssentials.
The comment tag trick is a myth. I would advise you to disregard the web site that is telling you to stuff keywords, as well as any other way to "trick" the search engines. Just focus on creating indexable content. You'll come out miles ahead and avoid unfortunate penalties.
A site search (using your google toolbar) for the term "banned" is quite instructive.