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Fascinating tool, I'm playing with it right now ... but I wouldn't put too much stock in it. Some of the numbers agree with other similar tools, some don't. Google only publishes a snapshot of their PR four times a year. You probably already know this, but it means those numbers are a point in time, anything you've done since Google's last refresh isn't reflected.
Doesn't Digg use rel="nofollow" in their links? You would want to subtract those from the total to get a better idea how many links actually contribute to your PageRank if you're trying to demystify it.
Interestingly, SeoMoz.org says my home page's PR is 1, which agrees with the SeoQuake FireFox add-in, but most of my internal pages are somewhere from 2 to 4. That doesn't seem to be reflected in here. I haven't looked at your site ( sorry, don't need any coding, nor do I have beer to pay you with ) but I'm guessing you probably have content in your site somewhere that's more valuable than your home page ... and that this is probably reflected in your PageRank. If your friend's site has five pages and yours probably has a dozen times that. It seems like, with a smaller site, people can just link to the home page, but with a big site, they're more likely to link to the exact page they think is interesting.
It's strange that most of his links come from you, and he outranks you ... but maybe one or two of the other links carries a lot of weight. PageRank is a recursive formula; how much weight a link has depends on its PR, and on how many there are on that page. No two backlinks are equal, just like snowflakes.
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