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I am 99% sure Matt Cutts of Google said you will not be penalized for using the nofollow attribute to flow your internal PageRank, as you see fit. We have some more conversation on quotes from Matt on that over here.

But will it ever raise a red flag? I would be lying if I said no. I would think it could be used as a measure to see which sites are overly optimized for search engines. Heck, what normal webmaster would nofollow their internal links? Most webmasters have no idea what a nofollow attribute is, let alone use it for internal links.
3 Comments     

Comments

from DanThies 170 days ago #
Votes: 2 | Vote:
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A normal webmaster using Wordpress would have nofollow on a lot of internal links.

from rustybrick 169 days ago #
Votes: 1 | Vote:
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Just remember - NOARCHIVE.  For those that don't, don't judge. 

from TheMadHat 169 days ago #
Votes: 2 | Vote:
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Yes. Having a web site can get you penalized. We may as well go live in a cave.

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