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martinibuster - 7:00 am on May 5, 2008 (gmt 0)
I know of several cases where crappy inbound links, without reciprocation, caused a site to be banned. Then throw a spam report into that or a search engine quality review. There is no algo or hand check that can tell which site generated the spammy inbounds themselves and which one was the victim of Negative SEO. [edited by: martinibuster at 7:23 am (utc) on May 5, 2008]
idolw is correct about the algo being able to deal with less than optimal inbounds, but there's another scenario that can undermine the algo.