Author bio links can either help or hurt your SEO. Author bio links are helpful if the site is large enough and generates enough traffic. Leaving a comment on Joe-Bob's Baloney Blog is probably not so much. Google's new Penguin protocol examines sites based on keywords.
You should have a good mix of high-end content, keywords, and links out and back. If you want people to be more interested in the author than the article, limit the links in the text. There is no black-or-white "best" answer to whether you should allow guest bloggers on your site.
Author bio links can be very effective, but require some knowledge of how SEO works on your part. A good author with a basic understanding of both SEO and guest blogging netiquette can be an immense ally.
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