Can they really trace my ip address?

Nope. You do not own an internet IP address which costs thousands of dollars. You probably have DSL -- and the website can only see your ISP's outbound router port IP address, not your DSL modem's address which is inside your ISP's switching network and not accessible to the outside world. The whole "we traced your IP address" is a boogyman that has been perpetuated on the internet since the days of dial-up. They can, however, see your connection identifier such as "AmeritechDSL --8859" -- but you can unplug your DSL modem for a minute, plug it back in and --voila!-- you have a new connection identifier. BOO!