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Crush - 7:31 am on Mar 14, 2007 (gmt 0)
The internet does not stay still and more competition comes along. If you do free serps you have to keep up with what is happening in google and adapt. I would take a look at your internal linking first and then start buying links to your most important product pages to start clawing your way back. Good luck but this will make you stronger. I also think you have nothing to lose by flouting google's policy on "buying links" because witout links you will be handing out more redundancies.
It can be fixed. To be honest this started happening over a year ago, I would say 18 months. Long tail phrases for us started not to rank, so we started deep linking.