kidder - 10:39 pm on May 18, 2011 (gmt 0)
Update - We are past the 24 hour mark and still down on page #55 for the main term I'm tracking. We still have our Google images traffic and a few random long tail search clicks but that's all. Recently we did include an iframe search widget in the posts, it runs after each product review and gives the users an opportunity to get the best prices from the various suppliers in their area. I discounted it as a potential problem because its not the first time we have used it on the site.
The idea that generating regular new links to a 5 year old website is enough to induce a penalty is disturbing if that is what has happened here.