http://www.thewindowsfix.com/links Is this a good idea for linkbacks? Is there any fallback? Do you have any better recommendations?
Link back is not good only if the page you are going to linked is good enough to place a reciprocal link.
Reciprocal is good if you don't want to gain your site PR. If you placed a other website link and some is done by bother end, your PR will remain with you. But be sure to make reciprocal link or back link with only the some niche websites.
No, you're not wrong. But using reciprocal has some benefits for directory. Suppose if you've a directory and placing my url, you'll sure lose your PR i.e. 2 PR points from your total PR points 390. Now you've only 388. But if a user place your link on his/her site, you'll get return PR point from him/her site. May be it's not 2 PR points but something you're getting from that site. Suppose, if you're getting 1 PR points from that site, your total PR point will be 389.