Sgt_Kickaxe - 4:39 pm on Oct 20, 2011 (gmt 0)
Step #1 - I removed all Google beacons including search box, analytics and +1.
Step #2 - I cut the number of adsense units in half (was only showing 2 per page, none on most).
Step #3 - I carefully reviewed webmaster tools and removed an entire directory from Google, the one Panda beat up the most.
Step #4 - I moved Pandalized articles out of the other directories and into their own, a new one just for them.
Step #5 - I updated my internal link structure so that no page interlinks with any page in that category.
I saw a moderate improvement but a subsequent "minor" iteration (as per Matt Cutts Twitter message) took that away. I refined my site to deal with a few more pages that seemed like they might be pandalized and am seeing more traffic daily, though not as much as before the first smack.
HOW do you fight a bear? You don't, you avoid it, and avoiding Google products isn't hurting, at least not yet. I'm working on a system of throttling Googlebot because prior to my Panda smack Googlebot went crazy for a day. I see no reason to allow that again. The biggest benefit to the changes is not wasting time worrying about Google issues anymore and simply building a better site with the time savings, it's refreshing.