Some related posts from Technorati and Google.

 [Andybeard.eu] How a Blogroll can kill your Pagerank - Andy Beard: Now there are times you want to sacrifice a little page rank to other sites, especially if they are reciprocating, sharing visitors, or in the case of my blog, I like visitors commenting and joing my “community”. You might also do it in a carefully controlled way from a mininet to one of your own sites.

[Feedblog.org] Kevin Burton's Feed Blog: nofollow Considered Harmful: One side effect of NoFollow is to decrease the overall impact of blogs on Google's PageRank algorithm(s). Given the unexpected volatility that blog publishing systems, RSS, and related technologies insert into PageRank, NoFollow is good for Google, good for traditional publishers, and bad for bloggers in ways that were not publicly predicted in January.

 [Scoble.weblogs.com] Scobleizer: Microsoft Geek Blogger: So, now I could link to that store so you all would be able to visit it, but I could add "nofollow" so that Google, Yahoo, MSN, and other search engines wouldn't consider my link in their ranking system.

 [Dylan.tweney.com] the tweney review » Blog Archive » Google’s embarrassing mistake.: started by Dylan Tweney.  It seems that he as well as others feel that the nofollow tag was a patch that failed the blogoshpere and in fact may have been a detriment to bloggers: Worse, nofollow has another, more pernicious effect, which is that it reduces the value of legitimate comments.

Reflected tags on Technorati: Blog, Nofollow, Targeting Spam