Redirecting Page Rank

[wige]

I have seen a lot of debate about whether 301 or 302 redirects should be used in various cases, and I came across what seems to be a strong argument in favor of using 301 redirects whenever possible over 302.

Matt Cutts recently gave a presentation about paid links. The presentation indicates that as long as the link does not pass page rank, paid links are acceptable and neither the site that purchased the link, nor the site hosting the link would be penalized. The presentation went on to list several ways of setting up a paid link so that no page rank would be transferred. One of the more interesting suggestions was to set up a redirect using 302.

This indicates to me that Google will crawl 302 redirects but any benefit of the link dies at the redirect. This also indicates to me that 301 redirects are counted by Google and pass at least some benefit from the link to the destination page.

Is this a reasonable interpretation of this situation? The powerpoint presentation can be downloaded from http://www.mattcutts.com/files/paid-...esentation.ppt.