Sites usually don't get penalised for internal linking, but don't overdo it. I'd vary the anchor text for diversity and to avoid over-optimisation.
No need to create such a mess in linkbuilding. Its worth is almost zero and sometime it generate trouble for you in getting ranks. so my personal opinion is to avoud from such tricks in SEO
I was trying to come up with a polite way of saying that the above answer is a load of shit but well....what a load of shit.
Internal linking and the correct anchor text is an excellent way of providing relevance. Use Adwords to find out what anchor text is most relevant to the term that you're trying to rank for and then use that to link back to the page, bonus point for actually having those terms on the page. Spice things up with synonyms, plurals and spaces and you're golden.