steveb - 1:22 am on Oct 5, 2009 (gmt 0)

Back to the topic, if a domain is penalized, there is no magical way to pass its former value to a new domain, nor will you pass along the entire penalty either. The former value of the old domain no longer exists. It's like Confederate money. You can't trick, manipulate or force Google to look at it as real money.

The way to try and get value out of the old domain is to get the penalty lifted. Then, proceed however you want to use its value.