My UTM shapefile lines up with Google layers if the project CRS is set to WGS84 mercator projection (including default 3857 and Google). But if I set the project CRS to UTM Zone11, they are slightly shifted. I've tried loading them and setting the project CRS in various orders - nothing worked.
You have to set your project CRS to EPSG:3857, if you want to use Google layers in the QGIS Openlayers plugin. Everything else does not make sense, because reprojection of 256x256 tiles does look ugly (unless you stitch them together and reproject the hole picture, but openlayers does not do that).
I digitise from the Google background whilst the the CRS is in the Google Mercator projection 900...
Openlayers is a plugin to QGIS, so not directly supported by the dev team. There have been less problems in the map canvas and more reports of issues in the print composer. You may find the next version of QGIS deals with the apparent problem.