For a while now I've been trying to get my head around how the nofollow attribute works, the benefits of using it and when or when not to use it. I've heard a lot about using it on links to your minor pages such as terms and conditions or privacy policy pages and understand that by doing so you're instructing the search engines to follow the link and index the page but it doesn't pass any page rank or link juice. I've also heard the analogy about imagining the page as a glass of water (or whatever your favourite tipple may be) and that each link out of the page will pass a shot of
PR to the next page thus helping to distribute page rank throughout the site.
After recently reading about blogs with the dofollow attribute on their comments links my question is this. By removing the nofollow attribute from the blog comments links or by including links to external websites will I be diluting any page rank that my website has collected and by freely passing on the link juice to external sites will my site benefit? Or should I be conserving my link juice on the website as much as possible by using the nofollow attribute?