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>and while Google Dance is going on does keyword replacement "not changing" per 2 days help achieve higher PR or lower?
Your PR will not be effected at all by changing your keywords on a page. It's only effected by links. Did I get your question right?
>Does interlinking too many sites result in distributed PR ...like some low key sites getting high PR and some highly important sites getting low PR.
This has been discussed many times around here. You might want to try using the 'site search' here at the top of every page, or using Google to search this site (I think this is the best way). Something like this - this [google.com]
If you want to learn the mechanics behind pr, you might want to give this [iprcom.com] a try. It helped me (sort of;) understand it.