Written by seomike of
http://www.seo-advantage.com.
Crosslinking or internal links are just as important to your sites structure as incoming links.
If you have all your external links coming into your home page then the further you have to click in the site the more PR you will lose.
For Example:
home page (PR 5) >> link page (PR 4)
home page (PR 5) >> Site map (PR 4) >> link page (PR 2 or 1) <--due to the amount of out bound links in a typical site map page.
Yahoo and DMOZ are good examples. The deeper you go in the directory the more the PR drops off.
Remember that the PR that is passed is divided up between the number of links on the page.
A big no-no is to put a ton of links on your index page. Doing this will water down what is passed to the internal pages of your site. A main menu of links is more optimal since the home page PR is just going to be divided by a smaller number of pages. Then those pages can act as hubs or categories to the content they contain in them.
Good luck!