steveb - 12:24 am on Jul 4, 2010 (gmt 0)
There is one thing for sure... it makes no sense at all to handle nofollow that way. Zero. It's just illogically inconsistent.
On the other hand, it is a whole different thing whether Google does it or not. Google is capable of really dumb things, but there is zero evidence that they do this this dumb thing.
In any case, this is just about the easiest thing to test. Build a page, link to it twice from ten or 100 or 10,000 pages with two links, one of which is nofollowed. See what happens two days from now.
What happens today is the page is indexed, the backlink can be diplayed by Google's link: command, and the page ranks. And all of that is logical and consistent with everything Google has said about nofollow.
And TheMadScientist, please get a grip. I said it would be stupid for GOOGLE to do this. You believing and stating unequivicolly something so illogical is not what I said is stupid.