I've seen this term thrown around quite a bit lately, and it begs the question, "What is a Web Friendly Directory?" One example is www.neptune-directory.info. For starters, it looks likey they've got solit, search engine friendly URLs, which include the category and/or sub-category in the URL, and they make great use of the 'title tag' and 'anchor text' on all links in the directory, providing the maximum possible search engine optimization benifits to link owners.