David I saw a post about Google removing the directory reference. Google isn't always the best source for information even about Google oddly enough. They have shown a dislike of directories over the last year. Some criticized them for having the mention in there about it being good to get listed in Yahoo's directory, while at the same time punishing people for buying links. It costs $300 annually for a review from Yahoo to be in their directory so it was seen as hypocritical to endorse one while panning the other.
I think directories can still be useful, though hardly as useful as they once were. A link from the Yahoo directory still likely helps regardless of whether or not Google removed the mention.
I certainly wouldn't put too much focus on directories. Most are garbage and aren't worth the time to submit even for a free link. I do think some are still worth the time submitting to, which is why I think it's good to understand what to look for when judging a directory.
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