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Its really weird to me that it would have a 0/10 PR though, there's a html footer nav to the rest of the site, which is quite big, 20+ links for my category on that page - how could this have a 0 PR?
If all you are doing is submitting your site to the directory and not reciprocating, why not do it. If they ask for a recip link then I would not do it, unless you gave them a non pr passing link also(ie.javascript).
You also have to look at the potential traffic value of the link. Pr isn't everything ;)
And, yes, its got very good local visibility and therefore its good for actual traffic, a partner site to the main local newspaper.
I guess the technical question is - having an external link from a page with a lower PR than my homepage won't hurt my PR?
"Maybe because they don't want it to be(preserve their pr)."
I'm guessing there's a simplified answer to this and a complicated one - how about a simplified response in this Discussion and then a link to a good overview of PR preservation?
If I link from my high PR page to an external page with a lower PR, will that erode my PR?
>> If I link from my high PR page to an external page with a lower PR, will that erode my PR? <<
No. The PR of your page will stay the same, regardless of the PR of the other page, with a major exception. The exception being if you link to a "bad neighborhood", like a link farm that Google has banned, or bans later, apparently this could be very bad for you. That's one reason why you need to be carefull about who you link to. The answer is to link to quality sites that provide real benefit to your viewers, and not just link for the sake of linking to get PR back in the form of reciprocal links.
That said, how much PR you pass to another page may be affected by how many outbound links appear on your page. But the PR of your page will stay the same anyhow.
Stay tuned, if I'm wrong about this, someone will be along to correct me....