Following up on my question as to whether google discounts links from sites that are hosted together, I've found a new release that suggests other people seem to feel the same way....(and I quote / paraphrase)
June 28, 2007 - SEO Hosting, a division of Host Gator web hosting, announced today .... a new service enables customers to optimize their web sites for search engines by hosting on multiple C classes.
The new service stemmed from customers regularly asking Host Gator for multiple C Class capabilities because of their belief that search engines will penalize sites that have the same C class and are linking to each other. With multiple C Class capabilities, customers no longer have to work with different hosting providers to overcome this problem and can consolidate all their sites on SEO Hosting.
Does this matter at my small size? For instance, I have four generators of links hosted at the same place:
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