Okay well I want to start up a web directory, for all kinds of websites. I am looking for a good script to do this and I see you guys are using IndexScript. Also have seen a lot of good things about phpLD but thats a paid script.

Where also would I market a web directory??

Hi FunSiteMaker, I'm directory owner myself for many years and wouldn't suggest you to start general one at that point, as Google is trying to fight with directories as there are too many abuse in this field. You can see thousands of small directories which have 3 links in total and doesn't contribute anything to the web overall.
The only good reason to start directory is starting niche directory which would only concentrate on specific sites. Than you don't have a problem with marketing it also as you'll be able to exchange links with some sites in the field you're specializing. Later if your directory become good resource people will link to it themselves.
The only advice isn't demand from sites to place reciprocal links for submission, I believe it's unfair and doesn't attract good sites to your directory.

You could market the directory on webmaster forums like this one and DigitalPoint. I agree with sensovision, target a specific niche and cater to them. If you allow them to submit their sites without forcing reciprocal links, they are more likely to recommend and use your directory.

There is a free version of phpLD available it's the older version 2

http://www.phplinkdirectory.com/phpLD-2.1.2.zip

I want to start my own web directory as well and thanks for the free version of phpld dan88. I am checking it out.

Awesome Dan88 Thanks for that! I'm sure a lot of people will be able to make use from that Cheers