From the October Google Webmaster Chat Q &A:


tewmonkey, cardiff,wales: Until recentley (the last six months or so) a high ranking was achievable by submitting articles to article directories (providing they were 40%-60% unique),  it no longer seems to be the case.  Have links from article sites been de-valued at all?

Matt Cutts: In my experience, not every article directory site is high-quality. Sometimes you see a ton of articles copied all over the place, and it's hard to even find original content on the site. The user experience for a lot of those article directory sites can be pretty bad too. So you'd see users landing on those sorts of pages have a bad experience. 

If you're thinking of boosting your reputation and getting to be well-known, I might not start as the very first thing with an article directory. Sometimes it's nice to get to be known a little better before jumping in and submitting a ton of articles as the first thing.

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