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As I see it,
there is no penalty for crosslinking your domains on the same IP or same "C" Block.
However, if the domains are all chasing the same keywords or niche, i.e.you have 5 ebony sites on the same "C" block and interlink them, then google will discount 4 of them.They don't want their serps to be dominated by one guy.
Also as has been mentioned you need independent links coming from outside this nest of sites otherwise your crosslinking will be discounted.
Now don't go and get the same links for the same sites.That is don't go and pay mrizzz $50 to link all his nest to your nest.get different inbound links for each site and then you can feel fearless about crosslinking between your own.
So basically you have to make google think that these sites are independent of each other and can stand on their own, that their content is different and they are getting links from different sources.
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