Bill - right now it looks like drops are automatically zeroing out, however 1 or 2 slip through unharmed. The ones that do get zeroed out do seem to get back their "PR" one new links have been added that play into the new PR. Seems to still be a waiting period of about 6 months average to get sites you set up on these domains to get any kind of good rankings in the SERPs but after that they usually are fine.
A lot also depends on their prior use - its always good to check it first
