Does submitting to directories REALLY help out your website?

Greg, yes, it will certainly help. However, what you need to realize is that like with any form of advertising this is only one part of the marketing equation. If you are relying on your directory listings alone to account for all your increased traffic and PR, I think you have a hard time seeing results.

Also, you need to continually stay on top of these listings, and in many cases, try to concentrate your listings and the volume of directories you choose into a smaller number. What I am saying here is, be a bit more picky.

For example 1 or 2 high quality directory listings can carry the same weight as 500 crap listings.... Chose wisely, and if you use a directory submission service, make sure they give you some type of report and or listing of the directories they are using.