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1. Would this work?
2. Does it risk a PR penalty by Google?
3. Am I worrying too much about outbound links?
Your thoughts on this are greatly appreciated!
Your third option is what I agree with most. So-called "PR leakage" through outbound links is not really an issue worthy of concern.
[edited by: tedster at 11:22 pm (utc) on Aug. 18, 2008]
PR(A) = (1-d) + d (PR(T1)/C(T1) + ... + PR(Tn)/C(Tn))
which means, roughly that the amount of pagerank that is given to every link is the pagerank of the current page divided by the number of links on the current page.
so it depends on the amount of links that you have on your page and the ratio of outgoing to internal links whether and how much it will hurt you.