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sem4u - 8:42 am on Aug 8, 2011 (gmt 0)
One of the very competitive sectors that I work in has sites with keyword densities of 2% to 7.6% to a mammoth 24%, so I don't place much importance on it these days.
I try and get the phrase that I want to rank for in the title and H1 once, plus 3-4 times in the body copy.