this would help you : http://en.wikipedia.org/wiki/Nofollow http://googleblog.blogspot.com/2005/01/preventing-comment-spam.html
im also one of those people confused about "no follow" and following this issue. but IMHO(correct me if im wrong) search engine will either change, already changed or also confused how to treat no-follow.(maybe with secrecy) Why? most webmaster or SEO or maybe some of those who implement nofollow consider it was a failure. why again? most links with nofollow links are coming from trusted websites(e.g. wikipedia, comments on blog from legitimate websites) also captcha was widely implemented now and nofollow was less applicable for spammers. i hope to hear more opinion from DP users.
http://www.mattcutts.com/blog/seeing-nofollow-links/ http://www.mattcutts.com/blog/quick-comment-on-nofollow/ you can also these blog posts about the nofollow
please go through these links if you think this is the case http://googleblog.blogspot.com/2005/01/preventing-comment-spam.html http://blogs.msdn.com/livesearch/archive/2005/01/18/nofollow_tags.aspx http://www.ysearchblog.com/archives/000069.html
it was from 2005 back when search engines was giving an importance to nofollow also i dont trust that much to matt cutt. he was one of those who implement the rules and rules change overtime. IMHO(again) he was allowed to talked only for what he was only allowed.
no follow says to the search engine "dont follow this page", they still look at the pages it links to (you can track it by watching google download your site), for me i noticed google no longer followed the link. nofollow also does not allow the link to pass on PR to that page is linking to, and you can use it to retain PR (prevent PR leakage). Thats why google suggests for posts on blogs you have nofollow, so spamming is less attractive. As for the other search engines im not sure, but ask.com ignores it fully and will crawl whatever it wants. Pierce
NO FOLLOW - the Search Engine will not pass Link Juice (for Page Rank building purposes) - the Search Engine will still index the link/URL
If you add the rel attirbute rel="nofollow" to your urls bots won't follow it and pagerank wont leak.