How weighted are reciprical links? Say i exchanged links to my PR 0 blog with PR 5 blogs, would that take my PR up? Or as I am also linking to them would things stay the same?

Say i exchanged links to my PR 0 blog with PR 5 blogs

It depends on what page inside the PR5 site your link resides.

Is the page cached and indexed, does it have PR and how many clicks away from the PR5 index page is the link?

see here

http://www.1stpageseo.com/backlinks.php

for more discussion.

OK ive read that, thanks.

But do the two links not cancel eachother out in some way? I mean does google not recognise that both sites are linking to each other?

If you're giving the pr0 link and you're receiving the PR 5 link, you're going to see more benefit in terms of PR (unless the pr5 page has 10k or so links on it :P). If you are both exchanging PR 5 links, i suppose it would come down to the total amount of links each page has. So, a page with 1000 links wouldn't transfer as much PR as a page with 10 links. Also, the way we see PR on the toolbar is not the exact PR of the page. A PR5 page could be closer to PR4 than a PR6, or vice versa.

I think another factor with link exchanges is to make sure the content on each site is releated, I think only then will you gain some weight on the link exchange.

are you deep linking?