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Many involved in SE-related work are concerned that G may have stepped off a cliff edge in mid-December 2004.
G's claim that, generally, others linking to your site cannot harm your search position does not seem to be true at this time.
Be sure to check to see who is linking to your site and make sure they are helping you in your SERPs vs hindering.
The biggest issue currently seems to be related to 'duplicate content penalties' being applied to the target sites and NOT the site scrapers who are doing all the content stealing and duplicating.
-Dino
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