TheOptimizationIdiot - 5:48 am on Apr 28, 2013 (gmt 0)
All I can say is that it worked and within 2 weeks I received a 15% increase maybe 20% in traffic.
Penalties do not seem to pass immediately, but wait a couple/few months and my [educated] guess is if you haven't stopped the links from passing weight to your site via nofollow (or actually found and fixed the issue) you'll be in the same boat as those who have "recovered" from Panda/Penguin using 301 redirects. (Meaning, it's a temporary solution to a more permanent problem, which is not solved by redirects.)
Way better, imo, to stop the issue at the source, meaning if inbound links are the issue, making sure they don't "pass weight" to the site by using nofollow is a better long-term solution than putting a band-aid on the problem.