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Your primary links should be plain text or graphics with your key phrases in the alt text. This may sound obvious until you consider that there are alternatives - Flash, javascript, links made impenetrable by CSS effects, drop-down DHTML menus etc. Just try to keep things simple.
Be sure to use keywords in the links anchor text and, if you use graphic links, use them in the alt text.
You should definitely link to your site map from your home page. For preference, do as I do and link to it from every page. What you're trying to establish is a system of links easily and clearly negotiable by a search engine's spider. It's not enough to create great content, you have to make it easy for the engines to reach it.
If you're working with a frames site, something I don't recommend, always place a link to the site map from within the noframes tags.
If you're working on a site with several hundred pages, split the navigation up into several interlinking and categorised site maps. Try to keep the maximum number of links on any one page down to a hundred or so. You don't want to appear to be a link farm!
Bearing in mind how easily you've been able to find this site in the SERPS, perhaps you'd like to know a little about my SEO Services. Unlike other SEO companies, I don't ask for huge sums of money up-front. I ask you to pay just £349 (349 UK pounds) for an SEO REPORT and after that we do business on a monthly pay-as-you-go-basis. Prices will vary according to each site's configuration and SEO needs - but you can rest assured we'll arrive at a monthly fee that will fall within most small business budgets.
So, if you know that your goods are the best, your prices are right and your customer service is second-to-none but your web site just isn't happening... follow my advice and between us we can turn it into a money spinner.
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