In 2005 rel="nofollow" was the new in thing for PR sculpting which msn and yahoo also followed in their respective ways, some literally didnt follow links similar to robots.txt some followed but gave no weight to the link, nofollow also gave no weight to anchor text within the link.
Over a year ago google decided to change the rel="nofollow" attribute and allow PR to flow through and no one even realised! I think when people found out they all initially panicked and thought all the PR sculpting they had done was going to be penalised and felt they had wasted their time, however this isnt the case, if you have nofollow tags in place they will be simply ignored for now.
Although Pagerank has become of less importance as time goes on, ie pages ranking highly with zero PR, its still well discussed subject within the SEO world.
Google's Matt Cutts doesnt recommend the use of the nofollow tag to sculpt the PR around your own site and says it should 'flow freely'.
I am not sure if this relates to external or only internal linking if so, I think this is gonna upset alot of people who have entered into the selling/buying of certain PR value links and also alot of blackhat methods, however for most it wont be a massive issue and they will continue to spend more time on more valuable SEO methods.
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