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ZydoSEO - 8:32 am on Dec 16, 2007 (gmt 0)
Some will throw out all of the non-indexed words like 'of', 'the', 'and', etc. before calculating the keyword density. Different tools may throw out different words before making the calculation. Others may not throw out any words at all before calculating it. Keyword density is overrated IMO. There is no magic #. I've seen pages rank on page 1 of the SERPs w/ 25% keyword density, others with 0.25% keyword density. Write good relevent content... that flows as it would in natural conversation and you will likely rank just fine.
There are so many methods of calculating keyword density, unless the author of the tool explicitly tells you his/her method, you'll likely not know for sure.