Lets say we have some abstract 1000 *points* as threshold for PR4 and 10000 as threshold for PR5.
Two competitors bid on the same keyword.
All other variables being absolutely the same, competitor X has 1001 *points* and competitor Z - 9999 which does not "visibly" differentiate them on the toolbar anyway. I'm sure google will still give preference to competitor Z in serps. To the best of my knowledge this is how they rank sites with identical PR in Google directory.
Any ideas?