tedster - 3:47 pm on Apr 7, 2007 (gmt 0)

The paraphrased comment from the lady at Google mentioned navigation: "remove multiple keyword variations from nav menu links" - but that is not the same thing as talking about inbound link anchor text from other sites. When backlinks are natural, then variation in anchor text would also be natural and expected - and most likely unavoidable.

Still, I can see how the comment is open to various interpretations as written. Does it mean don't change the nav menu's anchor text when it appears on different pages? ...or does it mean that even in one page's version of the nav menu, we should be wary of repeating the same keyword in multiple phrases?

I assumed the second, but it certainly can be read as meaning the first. I definitely would not reccomend that - not just for Google, but also for users. Consistency in labeling is an important part of helping visitors stay oreinted as they browse a site.