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Originally Posted by neveremail
As far as I can gather its to do with doorway pages.
The idea is that having a doorway like index.htm and warning.htm which leads to the same content will lead google to penalize you for making doorways.
So the answer to that is to mirror the whole freesite in its own directory. Hence no doorway. But what you do get is duplicate content.
I have seen no evidence that either method is more successful in SERPs than the other nor do I quite understand the reasoning behind enforcing either of them. But thats just me.
RawAlex brings up a good point, another good point is just to submit to the top LLs and leave it at that. There are lots of different theories and opnions and it seems to be a bit of a grey area of what is the best thing to do.
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Duplicate content is duplicate content.
Google doesn't care if it's in the same directory or on a different domain. If its indexed they know.
Like a multi-billion dollar company that has made its fortune through search technology isn't going to know any better..