In full disclosure I am adult webmaster. Had two profitable sites get hit. I haven't recovered nearly enough but I am documenting what I have found
First site: been running for 5 years very popular among those people enjoying this umm... activity. 100% unique, runs reviews, contests as well as a one stop for updates in the industry. It is heavy with affiliate links which I am becoming convinced is why it got hit in Farmer.
Solution: I found some java script code to encrypt the links. Google sees a random string being passed in the on click even. Short of being able to execute it it won't see the link.
Result: Tested it on the home page on the text links. Saw some very nominal recovery (could be noise). Began the first posting under this method today and will test for a couple of more days to make sure everything is fine with the click though. Then roll it out slowly to the rest of the site.
Site #2. Niche site has been 1-3 in its main keyword (competitive one) for 3 to 4 years. New posts every day, 100% unique written by me. Lost 60% of its traffic when panda rolled out. For its main keyword it dropped from position 2 to around the 5th page.
Solution: did an analysis of the pages hardest hit. One I thought was interesting I did a parody on the made for tv commercials. Where "widget" was mentioned multiple times in almost all the paragraphs. More interesting I was not trying to sell said "widget" (It appeared in the picture set). So apparently Panda doesn't enjoy sarcasm, any human reader would have thought it was funny. In any case I rewrote the page and it recovered OK
Second page: admittedly thin content. added one paragraph. It recovered.
A number of my pages had duplicate titles and metatags that got hit. I have been cleaning them up as I go (or deleting them). so far no change but Google has not yet seen them (as confirmed in the webmaster tools).
Also no changes for the main keyword. If anything it has gotten worse. I will probably also try the link encryption since I am convinced it has something to do with affiliate links
Anyone else have any ideas or findings they want to share?