Yes, i do recommend directory submission. Regular link directory is better then reciprocal link directory if the size of the directory in large enough you wont get much benefit from them..
Now, Find sites related related to your Niche, and place a mail to the owner directly for link exchange. It will save your time from searching on net and finding correct link patners...
Pretty basic stuff but search engine algorithms are evolving rapidly and things such as meta tags and meta descriptions are getting overrated. Naming links and images on the other hand is getting more important.
Thanks for such kind response, please drop a comment if you find that interesting.. I am writing another article on this it will be up soon..