Google continuously spiders links to fetch infos but it doesn't quite finalize its database until the google "dance" which happens once a month yet depending on back log it can take Google upto 3 dances to finally update an old info. So more than likely Google already knew your domain didn't exist anymore but didn't remove it from its database until after you registered your domain.. just too bad
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Just going from stuff I've read, the number of outgoing links, going out to other domains on a page, will bring the rank of that particular page down.
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Don't believe everything you hear
If that was the case, TGPs that list clean galleries would have no PR huh?
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they dont have to link to u to earn u points, u just link to them. Google places alot of its results positioning on content and relevance (different to PR), better outbound links = good content.
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They do have to linkback to you to earn good points for better PR otherwise, you could simply link to yahoo, google, msn and earn big points for free lol. Optimization (positioning on content and relevance) is a different story cos no matter how good your PR is will do you no good unless you know how to optimize your page efficiently.