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I do know that in the old days (LOL a few years ago) the original googlebot would definitely fall short if you had bad html like CD34 posted above - and validation was sometimes the difference between the ranking positions for some keywords.
Since that time, Google has two new bots that dont seem to be "as affected" but for the minimum time it takes to validate (something Im real bad about) it would seem like a silly thing not to do - let alone making sure that the html will render well for a firefox user vs an IE user
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