trakkerguy - 8:55 pm on Jun 6, 2010 (gmt 0)
I had 12 sites hit with -50 penalty about 18 months ago. A couple came back after reinclusion request. Most I gave up on and did a 301 to other sites and none brought penalty along with them.
I didn't spend enough time analyzing to determine for sure if, or how much, the link juice transferred or helped the receiving domain.
Some were wordpress blogs, so I just exported the posts from old domain and imported to new, so the content and any links were found on the new domain.