Here's what our big G research has shown pretty conclusively:
- G-bots DO follow rel="nofollow" links.
- Rel="nofollow" links ARE counted as inbound links IF AND ONLY IF the page in question has already been indexed. They even occasionally show up in Google's Webmaster Tools.
- The anchor text of rel="nofollow" links MOST LIKELY are counted towards SERPs, though their value and weight is minimal and the quality of the page hosting the link is very important. Once again, this is ONLY true if the page has already been indexed.
Yahoo and MSN also seem to respect rel="nofollow" to a certain degree. Yahoo, for example, will show the links as inbound links, regardless of whether the page was indexed previously, but weighs them very lightly, regardless of the quality of the page they are on.