Beachboy - 7:54 am on Sep 30, 2002 (gmt 0)
I wish I could comment on the possibility of devalued internal links. Most of my sites feature flat menus, and I go to a lot of effort to assure inbound links (from other sites) to various internal pages. As a result, most pages in most sites have links to them from other pages in the same site, as well as from outside sources with quality PR. There is close correlation between the phrases for which each page is optimized and the inbound anchor text from wherever. Consequently, even the internal pages have a strong presence in the SERPs.