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Redirect depends on your setup, and also where it is coming from... In some cases 404 traffic can really hammer your servers, so redirecting 404 traffic to a box with a fairly low load would be a good idea.
Sending 404 traffic to sponsors can be risky, as the original referer may show up in the sponsors log.. Resulting in you being left open to being accused of something you have not done (I have never seen this happen myself, but I do watch our logs files quite closely, and I am sure it could happen). A landing page of some kind on your own domain would be more safe.
403 traffic, if you have the time back a fake members area, and upless to feeds and other sites.. Bandwdith costs fuck all these days, so it's just a case of putting in the effort.
401, I don't have much experience with... Presumably form changes in server configuration.... So A screen somthing like 'Oh dear, something seems to have gone wrong.. The error has been reported to the webmaster and will will attempt to resolve it as soon as possible.. In the meantime, pleast take a look at these links:' Would be the best path?
It is possible to sell 404 traffic, but depending on how targetted your 404 traffic is, you may make much more by setting up some small avs sites etc (yes, they still do convert).
Some programs do offer ready made landing pages for 404 traffic etc... BizarreDollars is working on some right now, but if you would be interested in something in advance, drop me an email.
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