Welcome to WebmasterWorld Guest from 188.8.131.52
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]