Ok, everyone been infering from Matt’s comments that all of these nofollow comments would kill the page rank of this post. Which means this page should have shown up on page 1 for the phrase I searched which was “does google follow nofollow”. In spite of all these nofollow comment links it still was presented as the most relevant page, which it probably is.
In this illustration from the “PageRank Citation Ranking” paper, the authors demonstrate how webpages pass value onto other pages. The two pages on the left have a value of 100 and 9, respectively. The page with a value of 100 has two links that point to the pages on the right. That page’s value of 100 is divided between the two links, so that each conveys a value of 50. The other page on the left has three outgoing links, each carrying one-third of the page’s value of 9. One link goes to the top page on the right, which ends up with a total value of 53. The bottom right page has no other backlinks, so its total value is 50.
A navigational page is a simple page on your site that displays the structure of your website, and usually consists of a hierarchical listing of the pages on your site. Visitors may visit this page if they are having problems finding pages on your site. While search engines will also visit this page, getting good crawl coverage of the pages on your site, it's mainly aimed at human visitors.
On-page SEO is the work you do on your own website to get a high rank in search engines. Your goal is obviously that your website will show on the first page and perhaps even among the first three search results. On-page SEO does not carry as much weight as off-page SEO in the rankings, but if you don’t get the basics right… it’s unlikely that your off-page SEO will deliver results, either.
Adjusting how Google treats nofollows is clearly a major shift (as the frenzy in the SEO community has demonstrated). So, if Google were to adjust how they treat nofollows they would need to phase it in gradually. I believe this latest (whether in 2008 or 2009) change is simply a move in the direction of greater changes to come regarding nofollow. It is the logical first step.
Backlink is a link one website gets from another website. Backlinks make a huge impact on a website’s prominence in search engine results. This is why they are considered very useful for improving a website’s SEO ranking. Search engines calculate rankings using multiple factors to display search results. No one knows for sure how much weight search engines give to backlinks when listing results, however what we do know for certain is that they are very important.

Write a description that would both inform and interest users if they saw your description meta tag as a snippet in a search result. While there's no minimal or maximal length for the text in a description meta tag, we recommend making sure that it's long enough to be fully shown in Search (note that users may see different sized snippets depending on how and where they search), and contains all the relevant information users would need to determine whether the page will be useful and relevant to them.
SEO is an effective tool for improving the volume and quality of traffic to your website. Visitors are more likely to click on free organic listings than on paid listings. Our SEO strategies apply only the best and most current practices that focus on the use of great content development, content marketing, social media. All of these strategies combined result in the most effective use of best practices that drive long term ROI.
What are "backlinks"? Backlinks are links that are directed towards your website. Also knows as Inbound links (IBL's). The number of backlinks is an indication of the popularity or importance of that website. Backlinks are important for SEO because some search engines, especially Google, will give more credit to websites that have a good number of quality backlinks, and consider those websites more relevant than others in their results pages for a search query.

However, if you're going to understand online marketing, you have to understand the importance of building Google's trust. There are three core components involved here. These three core components are like the pillars of trust that comprise all of Google's 200+ ranking factor rules. Each of those rules can be categorized and cataloged into one of these three pillars of trust. If you want to rank on the first page or in the first spot, you need to focus on all three, and not just one or two out of three.
Content is king. It always has been and it always will be. Creating insightful, engaging and unique content should be at the heart of any online marketing strategy. Too often, people simply don't obey this rule. The problem? This takes an extraordinary amount of work. However, anyone that tells you that content isn't important, is not being fully transparent with you. You cannot excel in marketing anything on the internet without having quality content.
Steve, sometimes good information to users is a consolidation of very high quality links. We have over 3000 links to small business sites within the SBA as well as links to the Harvard and Yale library, academic journals, etc. But because we have the understanding that there should be no more than a hundred links in a website (more now from what Matt said) we have used nofollow on all of them out of fear that Google will penalize our site because of the amount of links.
On another note, I would like to express my contempt for Google and its so called terms of service regarding the legitimate acquisition of links. why should it care if links are paid for or not? Thanks to the invention of pagerank, it is Google itself that has cancelled out reciprocal linking and has stopped people giving out links due to fear of them losing pagerank, and blogs and forums are worthless thanks to the nofollow trick. so it is now impossible to get decent links organically, without having to pay for them, and those who do give out free links are considered fools. Google has brought this dilemma on itself, and yet it seems like punishing us for trying to get links other than freely! Face facts, no one is going to link to someone without getting a link in return! google has invented pagerank which is like a currency, and so people expect to be paid for links, as giving out links devalues their pagerank and so compensation is now required. It is forcing people to use underhand methods to get links, mostly the ‘paid’ variety.
I think that removing the link to the sitemap shouldn’t be a big problem for the navigation, but I wonder what happens with the disclaimer and the contact page? If nofollow doesn’t sink the linked page, how can we tell the search engine that these are not content pages. For some websites these are some of the most linked pages. And yes for some the contact page is worth gaining rank, but for my website is not.