Matt Cutts on Paid Links

Another comment on paid links from an interview with the MarketingPilgrim.com. Also, they don't have a way to do it automatically, yet:

Q: Are paid links going to be the death of the algorithm?
A: Many people want
to report paid links for a
level playing field.

We’re looking for a
scalable, robust way, but
we’ll do it by hand

Also: “We as a search engine can do what we feel is best to return a high quality index. Do what you want and we’ll do what we want to return a quality index.”