Here is an interesting post from Google's own blog about how buying links violates of their quality policies.
http://googlewebmastercentral.blogsp...-us-input.html
Quote:
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Today, in response to your request, we're providing a paid links reporting form within Webmaster Tools. To use the form, simply log in and provide information on the sites buying and selling links for purposes of search engine manipulation. We'll review each report we get and use this feedback to improve our algorithms and improve our search results. in some cases we may also take individual action on sites.
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