You should select good PR and Relevant sites when you get baklink as if you promote a website which are related to Toronto and It field then you search it with Toronto it solution company.
Yes reciprocal links from non relevant sites can harm your site, so as domain has stated make sure they are relevant and try to get more non reciprocal links. steer clear of link farms etc.
I've seen some of my Yahoo directory pages stop showing. Bear in mind that the links still count, but simply are not shown. Keep getting those relevant backlinks and you'll get to be where you need to be.
Sometimes sites where you create backlinks are closed and you backlink also closed. You should create backlink on those site that are working on long time.
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