* Outbound links improve your ranking
Actually, they can help by improving the quality and relevancy of your site. I've seen rankings improve when quality, relevant links are added.
* Submitting your site to the search engines too many times will get you banned
Yes it can.
* Links from .edu and .gov sites are worth more then links from other TLDs
Given that most .edu and .gov sites have good authority and page rank, they really do help. It's not so much the TLD being edu or gov, but the authority of those sites is huge.
* Pages with .php extensions don't rank as well as pages with .html extensions
Correct. One right so far.
* Search engines won't index pages with query strings/all query strings are not search engines friendly
It depends. They will if the page is duplicate content, URL too complex, etc etc.
* Using seo software will get your site penalized
Gotta really abuse this, but it can happen.
* Too many hyphens in your domain name will cause the search engines to label your site as spam
There is evidence this is true.
* Traffic is a factor in a page's ranking
Hard to say, but search engines do see a certain traffic metrics (e.g., SERP clicks and tool bars, plus public metrics such as Alexa) and could use them.
* Being a shared IP address will hurt your rankings
Actually it can, but it is rare.
The problem here is you can't just state myths vs facts. In the real world, especially with SEO, things are much subtler than that.