KaloVast - 3:37 pm on Mar 25, 2008 (gmt 0)
I believe search engines do cancel out reciprocal links, but this doesn't mean you should stop exchanging links with relevant sites. My website gets about a third of its traffic from referral sites where we have exchanged links in the past. The link itself may be neutralized since there is a link on either site pointing to the other, but visitors have used links from other sites to find ours. I would never release those links, even though they are two-way links because we get a lot of traffic from them.