I built this directory about 9 months ago hope to make some extra cash. It has grown to a very strong directory. I started SEO Idol with a keyword domain I add some links one a link from my directory. i created a catagory for Makeityourring sites and it beat my keyword domain so I enter my directory in the contest.
The Key to SEO is getting links. A directory can easly get links as the are lots of Directory list that will add your site. Submitting your site to Directories helps.
Good featured links helps even better. The key is finding Directories that provide good links. Directories that list your submission and then the post your link to a link page and then link to your site suck and are not really worth getting so don't pay for these.
A featured link that you pay for should give you some time on the main page with a direct link to your site and list you near the top of the catagory of yor choice. If the catagory list in the top 100 for your keywords then it will help your site.
The other Key is good content
If you have good content sites will link to you and there are somethings you can add that Google likes. I cover this more when the contest is over.
Commenting on Related do follow web sites helps to best ones are the one that are listed in your results if you can find them
