Apparently there was some big changes in the Google Algorithme recently. I wrote a post months ago about how to use the nofollow attribute for internal linking (PR sculpting): be aware that this is apparently changing and the use of NoFollow internally does not seem to be advised or accepted by Google.
See below a pic from SEOmoz which explains in details what is now changing:
This is a very good explanation from Seomoz. They also explained that 3% of the links on the web are NoFollow, and this could have a drastic change on the web. I’m not entirely sure for this one, as most of the NoFollow links are used for external linking in my opinion.
I also recommend this excellent post from Searchengineland.com which also explained this case.
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I would like to personally talk with you about it.
@kanoofa
Hi Kanoofa, if yopu have any questions feel free to contact me.