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dvduval - 9:18 pm on Jul 23, 2011 (gmt 0)
Was just reviewing an SEO customer's ranking today. All we did was submit them to a handful of directories (paid but cheap) about 6 months ago and they jumped from 10 to 2 in the search results.
I think if you are dealing with really competitive terms, directories would only be a small part of your strategy to build links, but they definitely still work for us.