notredamekid - 8:46 pm on Aug 16, 2004 (gmt 0)

I have heard that Google gives some reward for external links to sites that are related or quality sites (correct me if I am wrong). So is the boost you get from the external links worth losing some pagerank by linking to them? Thanks.

You are not sacrificing PageRank - you are building your 'hub' score for the Hilltop algorithm. Basically, you become more relevant for a topic by linking to authorities within that topic (and, as I understand it, it helps to use that topic's keywords in the outbound anchor text).

Correct me if I'm wrong here but you don't lose PageRank by linking out you merely dilute the strength of the PR you pass on?

correct.