Matt Cutts at Google recently released a video talking about updates Google is going to make through this summer. The update is named Panda 2.0 and more website will be affected by this update than the first Panda update. 11% of sites were affected by the first update so this will be large. Essentially the update will penalize companies that buy links, or have what Google terms "Unnatural Linking Pattern."
Here is my take away from the Google Post:
Build Sites that people:
-Bookmark, come back to again and again
-High quality content
-Time people stay on the site
-How many pages on the site people visit
Paid linking
Should
not flow page rank
Should
be a disclosure that it is advertising
That's it.