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I've always had the same nagging question, I have a lot of low volume URL's that I all stick in as subdomains of another site with a redirect. So far it seems to make no difference in search engines, but I'm never sure. One site has been like that for over a year, and still has a PR of 4.
There does seem to be a big problem in the way it does it's redirects, in that the individual page URL's cannot be linked from other sites. What ends up happening is that a search for text on a page displays on Google with the page name, but clicking on it always goes to the top level page. That's kind of useless.
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