wyweb - 3:42 pm on Dec 7, 2009 (gmt 0) I've seen people banned for far less.
And you don't "work it out with google." They'll work it out with you, if they see fit. You need to show some serious good faith gestures on your part before any of this will even happen though. Take down your search. If you have adsense ads, remove them. Be prepared to show server logs and kiss big time ass and you might be okay.
I've seen people banned for far less.