What google thinks about pagerank , webmasters and spams

Matts Cutt,the man behind google strategies for websites and google webmaster central explains some really nice facts about websites, spams like

Does Google remembers when it encountered first time with spam?
-Yeah, high pagerank sites must be clean,their are ways to cheat search engines so google need to be very practical in its queries that reflect website worth.

Biggest challenges for search engine after 5 years?
-Users that are asking harder and harder queries and their unlimited
expectations from the search engines.

How should small webmasters compete with big web-masters and websites?
-be creative,be faster,specific,targeted idea,unique,be expert in one area,try new tecniques

Things every webmaster know about?
googlewebmastercentral,backlink,keywords,broken links,statics,graphs of page fetch,check for site hacked,
check for spams,their tools too get know about hidden valuses of sites,report spams

How google deals with webmasters of different countries?
-as diffrent countries have different launguages have different market,keywords,feedbacks,

Does google notice Paid link which passes page rank on google?
-that handle by user,their feedback etc