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Can I create many intermal pages, each one specific to a keyword phrase? Do they have to be different from each other, other than the keywords? What penalties do I need to look out for?
I am not trying to manipulate or trick Google, the fact is just simply that there are many highly targeted keyword phrases for our products.
Can I create many intermal pages, each one specific to a keyword phrase?
Yes, in fact you should. You might be able to work two or even three phrases into a single page if you work it right, but it's pretty darn hard to optimise a page for 20 phrases.
Do they have to be different from each other, other than the keywords?
Yes. If you're at all fond of your website they do.
What penalties do I need to look out for?
Duplicate content penalties. Either automated or, if you go the 'same content, different keywords' route, manual penalties when your competitors dob you in for spamming.
I am not trying to manipulate or trick Google
:) Of course you are. So are we all to some degree.