Managing multiple domains on a single IP

[steve0]

There has been some discussion about Google's view toward IP address vs number of domains on the ip.

Suppose... a powerful, dedicated server with single IP has a large number domains hosted on it...
All stores, for example, selling the same general products.

Some selling subsets of these products.. some selling completely different products..

Many of which have links to each other.
i.e. AllTools.com, WorldofTools.com, Powertools.com, PneumaticTools.com, GasPoweredTools.com, Screwdrivers.com, UsedToothpicks.com

Is there an effective and google-friendly way to manage this situation without being penalized and possibly banned?

Should several new non-contiguous IP addresses be assigned to the server and the sites migrated to new addresses?
Can non-product text, meta data and design/layout be used to differentiate the sites and avoid any penalty?

Ideas? theories?

[Mel]

Well as we don't know the URL of the sites we can only generalize, but...

Lets assume that the sites are not owned by one entity. If they are then they are IMO trying to gain advantage by the use of multiple sites, and the search engines don't usually like that kind of manipulation.

If the content is different you will not attract a duplicate content penalty, but if the sites are cross linking, then there could be problems as Google has shown that it is interested in finding and removing the ranking effects of sites on the same class C address linking together, let alone all from one single IP.

The best solution IMO is to get hosting with different class c addresses for each domain. While there is a supposed scarcity of IP addresses, it is not difficult to find such hosting at very reasonable prices. Example; I have rock solid full featured hosting with great support and dedicated IPs for each of several domains at $13.95 per month.