So, you use SEOQUAKE and discover where your competition is getting their traffic from - then what? How do you go about diverting the traffic to your own sites and blogs?
Once you have discovered where your competition is placing there back-links then its upto you to decide if you would like to post your links in the same places or not. High PR sites are nice for back-linking to. Also try to post your backlinks to sites that are relevant to your niche... Google loves relevant back-linking!
SeoQuake is only one tool of many out there. The first thing you need to do is map out a plan of what you are trying to do. Then go from there.... Let me know if you need any help. John