1) Member will post their link on my site with anchor text
2) In return My site link will be posted on their site (reciprocal link)
Note:
System will automatically check our site link posted on members site an approve it. This must be automatic and system must check it every two day so that if any member removes our link, his link will also be automatically removed from our site
All shoud be done in current template / design
my site is [login to view URL]
So you will have "Links" section for it? What CMS your website is based on? Do you have dedicated server if not, is cron allowed? You'll definitely need it for periodic check up.