lassiter
I dont think they do any type of association as Google has always been pretty proud of their own spam detection
I know that my site has two red arrows coming out of it
http://www.siteadvisor.com/sites/linkforsex.com and I still rank #1 for linkforsex LOL
And doing some quick checking of the #1 site for "porn" he has similar arrows coming out so I dont think that would be a detrimental factor on the surface anyway
It is interesting that I noticed that one of my submitters site is red due to him linking to wegcash but I think we already discussed that in another thread here