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Using Open Site Explorer I was reviewing a sites links. This site happens to appear at position 2 in Google for a key-term that I am targeting for one of my sites. Most, if not all of the links appear to be coming from some very questionable sources that have absolutely nothing to do with their sites content or business. Some of the page titles are : Free Music - Free Music Tampa Bay Florida Fishing Guide Free BDSM and Bondage Sex, BDSM XXX, Fetish Por... LAX Car Rental Reciprical Links Page - Add Your Link Casino More Links Is this practice going to end up hurting their site and catch up to them at some point? From what I have read, these are not the type of links that you want to be going after.

What is the difference between the Google Directory and the DMOZ if any?

I'm receiving a duplicate content error in my reports for www.example.com and www.example.com/index.htm. Should I put the rel="canonical" on the index page and point it to www.example.com? And if I have other important pages where rel="canonical" is being suggested do I place the rel="canonical" on that page? For example if www.example/product is an important page would I place on that page?