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Over time I've probably used a combination of all of the above. Since I now use a link exchange script capable of sorting by uniques in, I have a top ten in a prime area to give back to those who give to me and I loop all trades into that, including directories.
Prior to that, I preferred to make categories and put the links together in that manner.
I've also hard coded and used the WP link management system but had given in to using the WP link management mostly out of laziness.
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