Thanks Matt for the informative post. However I do have some questions regarding blog comments. Let say a blog post of mine have PR 10, the page has 10 links, 3 of them are my internal link to my other related post, the other 7 links are external links from blog comment. Based on your explanation, even the 7 external links are nofollow, my 3 internal link will only get 1 PR each which is still the same if the 7 external link is dofollow. Therefore there is no point of adding nofollow for the sake of keeping the PR flow within your own links. Is this correct?
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