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Hi JohnJ
The algorithm is pretty complicated, and mostly unknown, but yes you're right in that page ranking is done on a per-page basis. It does also work by domain - an average metric is taken for the pages, and this in turn pulls up pages on the same domain wiith a lower rank (and reducing abnormally high-ranked pages too).
Homepage linking is normally the way to go, with outbound links on seperate pages that are less important.
Hope this makes sense
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Nafai
E-mail: nafai at punkass dot com
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