Hey Matt,
Things are pretty good - just planning on launching another site soon

Thanks for clarifying what would happen to the pages containing duplicate content ... And you're right about inconsistencies as I have sites which contain duplicate content (they were AdSense sites I purchased some time back and I'm pretty certain that the sames sites were sold to quite a few people) which rank on page one for certain keywords (e.g. the Concrete Stain site in my sig is a perfect example).
Not sure about how the in-bound links from sites with duplicate pages would impact a site....
As you know a great strategy for getting one-way backlinks to a site is submitting articles to article directories. So what happens when I submit the same article containing a link to my main site, to hundreds of article directories. Does my main site get penalised in any way for having inbound links from all these articles containing duplicate content? Or perhaps these inbound links are discounted and my site gets ranked for its own original content alone as you mentioned.
The thing is, submitting articles is a proven strategy of getting back-links to a site and improving your SERPs which suggests that the duplicate content penalty perhaps only applies if you have duplicate content on your own site (i.e. multiple pages having the same content on your site) and not neccessarily linking back to your site from sites containing duplicate content.
Kind regards,
Tony