The Page Rank Algorithm is discussed at:

http://pr.efactory.de/e-pagerank-algorithm.shtml

How is the algorithm used in practice when the number of outgoing
links on a page is zero?

Hi,

The formula given in the page is:

PR(A) = (1-d) + d (PR(T1)/C(T1) + ... + PR(Tn)/C(Tn)) 

where

    * PR(A) is the PageRank of page A,
    * PR(Ti) is the PageRank of pages Ti which link to page A,
    * C(Ti) is the number of outbound links on page Ti and
    * d is a damping factor which can be set between 0 and 1. 

That is, the number of outbound links (C) is not the number of
outbound links on page A (which is the page whose rank is being
calculated) but on the linking page (Ti). If there are no links on
page Ti, it can't possibly link to page A, therefore it won't be in
the formula.

Hence we can conclude that C(Ti) can not be less than 1.

Hope this helps
Regards
Bio

Oh yes, of course! How idiotic of me - I just mis-read the formula. 
Thanks for the clarification.