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BillyS - 3:05 am on Dec 31, 2006 (gmt 0)
Google knows what types of phrases should appear together and by looking for certain combinations of phrases it can paint a better picture of what the page is all about. However, if certain phrases are used together too frequently then a spam filter is tripped.
This is one of those documents I'm going to have to print out and read. About all I've figured out is what Tedster already mentioned.