I think PR still matters at some level. Probably not as much it did a year ago. For me the important thing is to get inbound links from high ranking sites in your niche. Doesn't matter if there PR is 4 or 5 or even 8. Also, getting as many inbound links as possible seems to have a better effect on your rankings than getting few good back links.
But when you combine both strategies, you will see faster increase in your rankings.
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