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I agree that 404 pages are "a fact of life" but they cannot be overlooked.
I've recently found that if there's a significant amount of 404's and unreachable URLs encountered by the crawlers that you DO get penalised!
A friends site dropped from position 3 down to 182 for his main keyword. It turns out that 70% of his site (in Google's eyes) was returning 404 pages. We added some 301 redirects and before you know it, he was back in position 3.
You can't just ignore 404 errors found in WMT, Google lists them there for a reason, they need to be rectified. They want you to provide the best user experience possible and 404's aren't going to help! Think of it as spring cleaning and general good practice to make sure there are no loose ends and dead pages, after all they may have external links pointing to them.
Last edited by gravy834; 04-02-2009 at 11:08 AM..
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