tedster - 10:17 pm on Nov 21, 2010 (gmt 0)
I think it's important to repeat my view here. This goes beyond a technical issue. Yes, pay attention to the technology but what you have is essentially content theft - and that's illegal. Go the route outlined in the link above, write the DMC notices, especially to the hosting service used by for currently stolen content.
Back this up with a Reconsideration Request - they do get read by Google employees and you do stand a chance of rapid action there, especially if some kind of technical trickery is in place.
And then go over your Webmaster Tools reports carefully, too, but only after you get the legal ball rolling.
And finally, you can post about the problem in Google's Webmaster Help forums - that's another way of potentially bringing the issue to the attention of Google employees and getting help.