NYJ - There are reasons to do or not do most things, so I'm not here to claim that it's "best" to do it
...but yes, the example you posted is the
way to do it. Mostly I wanted to point out the places you
(an ethical white-hat webmaster) would
not want to use the nofollow attribute.
You might also consider using target='_blank' in links where you'd use nofollow.