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In rare cases, the other site has PR0 because of a penalty. If you link to pages that Google considers a 'bad neighbourhood', then you could catch a penalty. Please don't worry too much about this; such penalties are quite rare and PR0 URLs are usually just pages that didn't have any decent links at the last PR update.
We should be showing PR now, but its still at Zero, and maybe we have not moved off the bottom yet because we have one or 2 links that are part of the Zeus collective, and their (outboud links part of the Zeus collective) PR is going up and down like a YOYO, one day its PR0 then PR3 and then today its PR Gray bar.
DO you think i am better off just removing these from my links as they may be causing the problem of us staying at PR0?
bekyed,
Linking to only 1 PR0 site or more from your PR4 page generally won't hurt your ranks, but you may want to consider the quota for PR0 sites if you think they are and will be valuable to you in the future.
To elaborate further, you may want to consider the dynamic PR strength of your whole site - from the past and new links. If you link out too much to PR0 sites from PR4 page than the PR strength of your site can afford, then you may see some negative effects on your rank, provided there are some competitors who are closely behind you. You may not see any negative effect if your old links gain their strength and pass some PR to compensate for it and no competitors overtake you.
That's why I mentioned the 2 Zeus backlinks I have, and seeing their links pages bouncing around, from showing PR, back to PR0 and now grey, but their index and other pages are showing PR and its being passed on ok, until the links page, where things are changing a lot but I do get some traffic from these links as well but they could be harming me
It took my site nearly 4 months from the time it was indexed in Google to see any PR at all. And I pretty much started my linking campaign right off the bat. I have traded links with PR6 sites and sites that incorporate zeus. I have just received a PR4 and have good positions in the SERPs for many keyphrases. IF you think the other site offers good and useful information to your visitors then link to them. If the site is useless (just full of affiliate links) or uses dodgy spam techniques then I would not link to them.
Dave.