FranticFish - 2:23 pm on Mar 15, 2010 (gmt 0)

I was wondering that too. The question and quote from MC above refers specifically to redirecting one domain to another domain.

Nothing is said about redirecting pages, folders or hosts within a domain.

I'd consider it stupid for Google to bleed PR through redirects that take place within a domain, but then I also consider it stupid to bleed PR via a 301 full stop (which as someone else has pointed out means 'this document has moved permanently' - not 'this document has moved permanently so it should be trusted less'). So who knows?