Am I incorrect in assuming (at least for the time being) that in order for ReadNotify's services to work, at some point the message or iframe responses have to passed to ReadNotify's networks so that they can track the activity?

If not, then blocking all traffic to and from their ip addresses at perimeter firewalls should do the trick.

If the messages are sent through their mail servers, then you could instead setup rules on your smtp servers bounce the message to the real sender with an autoreponse along the lines of "We do not accept messages using ReadNotify's service because we consider them a violation of privacy."

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Link to this comment: http://www.securityfocus.com/comments/columns/258/27777#27777