Over at Search Engine Roundtable, Tamar points out a thread on WebmasterWorld asking whether or not Google Webmaster Tools lists incoming links which use the NoFollow attribute.

Yes. All links show up in Google Webmaster Tools, but Google Webmaster Tools does not make any distinctions between incoming links that pass link popularity and incoming links that don’t.

Good job Tamar!

Inbound links are still inbound links regardless of the nofollow attribute. Plus, they’re still valuable from a business perspective as they can funnel targeted traffic to your site.

Nofollow just blocks the flow of Google Juice, not Money Juice :)

Yahoo Site Explorer also tracks inbound links using the NoFollow tag and Yahoo also says that it does not let links which use the NoFollow tag influence ranking (but it does follow nofollow links to find & index new content).