Great write from Google about how to handle duplicate content issues.
This topic comes up more and more as I have seen websites with different approaches on handling and manipulating content on the web. There are more questions than definitive answers right now, but I am glad to see an official post about this. Anyone who follows the webmaster forums knows that this information has been around for awhile, but not officially aggregated in one place.
Something worth noting from the post:
Let’s put this to bed once and for all, folks: There’s no such thing as a “duplicate content penalty.” At least, not in the way most people mean when they say that.
and in conclusion:
In summary: Having duplicate content can affect your site in a variety of ways; but unless you’ve been duplicating deliberately, it’s unlikely that one of those ways will be a penalty.
There will certainly be more questions that arise from this but they are at least trying to round up as much information in a centralized trusted place as possible. Maybe somebody should create a knol about it

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Fri, Sep 12, 2008 Posted By:Eric Friedman
Marketing.fm, SEO, Search, Technology