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We dont link to him... can this hurt us bad? We really dont link to anyone and he drives a lot of traffic.
If it is, then whats the cure?
Use a tool like Visualroute to identify his hoster and upstream providers. Then email them all and demand they remove his site and block his site's IP address for breach of copyright.
Then once they have done this, stickymail me for the link syntax for my site link (to put on your home page) ;-)
I would have their hoster / upstream provider block it.