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It seems that if the shadow domain is optimized perfectly for keyword density and frequency etc, that in order for it to pack it's biggest punch, PR would have to be working in an integrated fashion with the shadow domain itself, rather than the domain it redirects the user to?
I'm assuming the answer is probably fairly obvious, but hey I'm new to this...
Google's Belief [google.com] on your questions?
Near bottom of page
What are some other things to look out for?
If attempting to cloak
If attempting to ask a question about cloaking, you should use the cloaking forum [webmasterworld.com]; otherwise the answer you receive will usually be "don't cloak." ;)