Samanthatouch - 3:23 am on May 30, 2013 (gmt 0)
In my case, it wasn't until I removed the links entirely that my domain began to recover. This was back in 2008 or maybe even earlier, so I don't know if it's relevant anymore.
Thanks Diberry, a friend of mine used to have an SEO business (he does ecommerce consulting these days). He looked at the site and made the same suggestion. He also said not to do anything drastic until I know for sure what is causing the problem. He knew a lot of horror stories.