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This must happen often as smaller hosting companies often offer to interlink sites as part of their SEO offerings.
In my experience, it's more common to get into trouble, if:
1. there is no interlinking at launch
2. you add extensive cross-linking
3. you are clearly "working" the anchor text to manipulate rankings
I definitely interlink my sites, and I do so in part for Google purposes, but largely because they're all sites that my visitors might be interested in. I think I've gotten help in my Google rankings, but how can you ever know? I've seen no evidence of harm.
In my case, these sites are all in the same < topical area >, so I think what I'm doing should pass any Google tests for being above-board.
[edited by: tedster at 5:58 pm (utc) on Oct. 29, 2008]