brinked - 4:24 am on Jan 3, 2013 (gmt 0)
I have 1 penguin client. 90% of his backlinks consisted of link wheels links.
We removed most of them and he has recovered to #11 (he was #1 pre penguin) from being on page 10+ after penguin. He does not see this as a recovery since he has not regained the number 1 ranking.
So as for linkwheels...stay away...you have every reason to believe that this is something that is a part of penguin as it very well should be.