Most of my reading is in google reader. Part of my work involves following a number of blogs and news sources, which are rolled together with the feeds I follow for fun. So even when I'm wasting time on the Internet, 50% of my time is productive.

Of course, there are times when you just have to get shit done. When I'm sufficiently motivated about my code, my brain automatically shuts everything else out. I don't force myself, I just wait until motivation/inspiration hits. Sometimes takes a day or two, but it's worth it, because then I'll have (say) a week-long burst of creative output that I couldn't have gotten any other way.