IMO that site (and mine and other pandalized sites) has a stigma, a Scarlett letter attached to it by Panda. If Google has no better pages, certain pages might rank, but overall the site is marked and all pages are dragged down a certain amount. Most pages will easily sink, some may swim against all odds.
Will that change? Some say it might eventually if you change your content, others it will change IF you change the content AND IF Google presses a switch.
Looks like we are in uncharted territory.