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Google lists 'excessive' reciprocal linking in its Webmaster Guidlines as link spam
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I'm not really sure about these answers, take the
Virtual Library vlib.org for example, front page has a PR8 with PR7 on most inner pages. EVERY one of the sites listed (mine included)
MUST put a reciprocol link back to ther VL as a condition of being listed.
The VL is the oldest catalogue of the Web, started by Tim Berners-Lee, the creator of HTML and of the Web itself, in 1991 at CERN in Geneva. Its
PR has never been hit and I guess you cant get much bigger reciprocol listing than that.