Oh BHW. So noobish.
Noindex and Nofollow are two different things. Are we talking about a domain that has noindex in site pages or are we talking about a site that has a manual penalty? You can also use the URL removal tool to remove the site from the index. With either of these (noindex or url removal tool), it still doesn't mean the site won't be crawled. You must put a robots file up to stop the crawling.
Now, since this is bhw, I know there is a good chance that the domain we're talking about has a manual penalty, and in that case it makes sense that the links are devalued. However, the above two circumstances should be pointed out.