Rollo - 10:09 pm on Apr 2, 2006 (gmt 0)

We launched the website around 3 months back.

That's the issue. You likely won't start performing well in Google (or Yahoo) for another 6 to 9 months, maybe even longer. Continue doing what you're doing (provided you're doing a good job of seo) and if in a year or so the site continues to perform badly then it's likely you are not using proper seo. You should be able to make page #1 in about 95% of markets if you're patient and work at it. (The other 5% being things like gambling, dating, web hosting, etc...).

By the way, welcome to WebmasterWorld.