Do links within my website linking to other pages within my website containing keywords as the anchor text have the same effect as one-way backlinks off other sites or should i not bother adding these links onto my page?
You should keep these links on your pages. The spiders will follow the links and be sure to index the other pages you're linking to. This will also boost your average pageviews per visitor, as more visitors will click the links and view more pages within your site. For real SEO results, however, you'll want the links to come from other websites residing on a different IP address as you.
Many Thanks for the advice it's greatly appreciated! I'm reading we should not be excessive with this as it could cause our pr, serp to drop in google? It's like a vicious circle then lol?