I was considering buying a directory listing in Yahoo, then I saw that it wasn't search engine friendly... what the? All the outgoing links are redirects. :/
It's been that way for a long time now. Apparently, Google still recognizes them, or so I have heard. I have not seen it myself.
Somehow they do count in Google so they might be worth the $299. People do also search the Yahoo directory so you could get traffic from that.