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Yes, you can dodge a blue turtle shell
Mario Kart Double Dash!! Multiplayer Gameplay - Luigi Circuit Madness

Race footage from a casual match in which I (masternessp: player 1) dodge a blue turtle shell

Player 1 - masternessp - http://www.youtube.com/user/masternessp
Player 2 - Spike (WildCard)
Player 3 - AceDynamo - http://www.youtube.com/user/AceDynamoGaming

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Hardware used: Hauppauge 1212 HD-PVR High Definition Personal Video Recorder

Software used: Sony Vegas Pro

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Mario Kart: Double Dash!! is a video game developed and published by Nintendo for the GameCube. It combines features from earlier Mario Kart games, such as Super Mario Kart, Mario Kart 64, and Mario Kart: Super Circuit. This game is the only game in the series that features the ability for two players to ride on a kart: one to drive and one to use items. Mario Kart: Double Dash!! is the fourth game of the series overall.