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Looksmart is not an issue here because there are not web dir serps
Not necessarily true. Looksmart have trusted feed status with Inktomi just like Positiontech, but they have been having some troubles getting it to work right, and a less reliable rumour has it MSN tells the difference and descriminates anyway.
I am of the opinion that MSN is not purposely descriminating, but does tweak Inktomi results, however Looksmart's trusted feeds are not maximising the fields open to them.