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tedster - 9:20 pm on Sep 20, 2010 (gmt 0)
I don't understand the inner workings of the Google algo well enough to suggest to much about what I would do differently. I can't imagine the kind of pressure that web spam puts on algo development.
One thing I have always thought they should do if they don't want paid links to influence ranking (and I agree that they shouldn't) is just identify them and don't let the link pass any juice, rather than handing out penalties.