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5 Random Favourites from Others!
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the fact that richard eriksson in 2004
won a contest with a blog and a few links from bloggers is enough evidence for me (and also the fact that the VanEats blog consistently beats Vancouver area-contentless food sites with zero SEO just a normal blog system)
Also read Scoble's Naked Conversations book and Jeremy Wright's blog marketing book for more!
Your mileage may vary but I think in 2006, it's no longer theory, it's fact that creating completeing content constantly, permalinks, RSS and tagging beat SEO voodoo.