Kyle,
Appreciate the response and your insight. The subdomain was set to 301, which made me nervous about the bad links. However, there has been no warning in GWMT. I am curious where the threshold lies for GWMT to flag your link profile. And if a poor link profile can affect your site's authority before you cross that line in GWMT.
I highly doubt a straight answer exists for that question, but I'd be curious to here yours (and others) experiences with the matter.
Thanks again!