Determination of the static potential with dynamical fermions

We present in detail a technique to extract the potential between a static quark and anti-quark pair from Wilson loops measured on dynamical configurations. This technique is based on HYP smearing and leads to an exponential improvement of the noise-to-signal ratio of Wilson loops. We explain why the correct continuum potential is obtained and show numerical evidence that the cut-off effects are small. We present precise results for the non-perturbative potential. As applications, we determine the scale r0/a and study the shape of the static potential in the range of distances around r0, where it can be compared with phenomenological potential models. (orig.)