SEOmoz | Google Says: Yes, You Can Still Sculpt PageRank. No You Can't Do It With Nofollow
http://www.seomoz.org/blog/google-says-yes-you-can-still-sculpt-pagerank-no-you-cant-do-it-with-nofollow

My boss showed me about this by using a client example a few months back. After dealing with the page sculpting first hand, this post made a lot more sense.