Has anyone seen evidence of having "too many" reciprocal links? I've always considered this an impossibility, but upon reflection it seems like an outrageously large link directory might look like a link farm to G*. Of course a manually developed directory would only have quality sites that are hopefully relevant...but what if you have a directory with thousands of reciprocal links in it and all those recips pointed to your domain? Anyone think there is such thing as critical mass?
I have no evidence either, but from what I've read, Google is very aware of reciprocal links. I don't think it is a matter of having 'too many' though. It's probably something more like reciprocal links have a diminished weight. So, there's nothing wrong with thousands of reciprical links, but it may only be equivalent to something like 500 non-reciprocal links.
Hmmm, I think this will be 1 to watch for the future as it will be very easy for Google to figure out the recipricol links. It's probably better to do a 3 way link where you link to 1 site and get a link back from another site.