TWhalen - 9:50 pm on Mar 10, 2003 (gmt 0)

High PR does NOT equal higher position in the SERPS.
Anyone who would tell you otherwise is giving misinformation.

PR is just one small factor out of about 100 that determines where your listing will show up for any given keyword search.

Instead of focusing on your competitor's site's PR (and why yours is higher), focus on your competitor's use of actual keywords in the Title/Description/Body Text. Find out how that compares to what you're doing, then adjust your content to mimic what your competitor is doing. (keyword position in text, keyword density, etc...)

Your competitor is beating you in the SERPS for a reason, and its obviously not the PR.