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It is also interesting to note but not entirely related that although the site is in the DMOZ directory, the Google Directory still contains sites that I know were deleted from Dmoz three months ago and does not contain sites that I know were added to Dmoz three months ago.
I have sites that are ranked in the #1 stop in google, in the most competitive spaces on the web, for the 2nd biggest search term. They have a majority of their BW links from the same IP.
Crosslinking isn't getting you kicked out!
Just a little note: you should cut down on your outbound links.
More inbound links and Less outbound links = Better PR and ranking.
I hope this helps.
If all they have is outbound links, I hope they have a bunch of content, or no competition in the search term that they're going after.
Ooh, by the way, show me one of your sites that's ranked in the #1 stop in google.