Unless its a linkfarm/bad neighborhood domain, I doubt that the page rank of the website you are linking to affects your own PR.
Of course it'll effect on original directory. Google gives some PR point to every outgoing links (websites) and point is deducted from origianl directory and page rank. If the directory have 0 PR than it's fine otherwise it'll gain PR. So, this is the main key factor of gaining PR of directories. Directory PR is just like a up down game. If you placed your link at 1>= PR site, you'll get more poit than having a 0 PR sites.
Thank your for the replies. I started a directory site a couple of months ago and it jumped from N/A to PR2. I noticed that a lot of the incoming links were not N/A, but rather PR0 and up. I was curious to know if N/A sites effected the site. Evidently not. Thanks!
Only inbound links and penalties affect your PR. The fact that you're even considering rejecting potential quality sites from your directory in favor of PR is just ridiculous in itself.
PR's are not so important for ranking. Also, it's updated very rarely and the updated material as you can see, is usually based on old content. It used to be more important, but time changes...
Who knows, this site http://www.hao123.com(sorry, it's Chinese) has many outbound links and its pr is 8.
You shouldn't even be looking at the PR of a web site that has been submitted to your directory. It has no relevance at all as to whether the site should be included in a directory.
First please try to find out what for the N/A status appeared- is it a new site or not indexed yet or banned by big G. I think if it is for last one, then there might have been some effect to your directory site for inbound links only