It's based on the PR of the links linking to you along with the quality of those sites that link to you (number of outbound and inbound), or at least so I've been told, still researching the whole page rank theory, and have a long way to go.

PR is based on number of inbound links to your site. From my understanding outbound doesn't matter.

you can learn a lot about PR on http://www.seochat.com

Thanks for that link iblive. Recently in the past I have read many articles pertaining to google pr and learned alot, however I have already forgotten most of it, lol.

I've read that the quality of the outbound links, especially text, DO matter.

Thought I'd mention it.

Outbound links will help the site you're linking to and its text will help as well. But I don't think it it will have any affect on the site which contains the link. Having many links to other sites will drain your pagerank. I wouldn't pay too much attention to your PageRank though, if your site is a PR 6 instead of a 5, it doesn't always mean your site will be listed above the PR5 site. You just need to keep your site full of quility content (unique) which isn't used on another site, and if you can keep your site relevant as possibe, you'll see the results.

Very true Amax, I agree with you 100%.

Did it take you one month to figure that out?

I also Found my website Dropped in PR from PR5 To PR4 when i actually was working on the backlinks for the whole month! i just dont get it!??! Does anybody elsE?