Forum Moderators: open
I'm pretty sure it recognizes the text, I've seen that happen...so it stands to follow that it recognizes the links.
This has not been my experience.
I agree that it will recognise it as a url especially if preceded by http://
However unless Googlebot realises that the form is used for navigation (and from my experience it doesn't), it will index it as text (not a link).
This is not to say the urls wont be spidered, however.