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[edited by: Marcia at 10:39 pm (utc) on Jan. 20, 2003]
(other better ranking sites have) less keyword density
What density are you using?
The rule with keyword density is 'more is not better - closer to Google's ideal is better', and I firmly believe Google has dropped their ideal keyword density significantly in the last six months.
It doesn't address your PR issues I know, but it always makes me cringe a little when I see people assuming that higher density should give them an advantage.
16% over all density for widget
10% in visible text
I believe that this fits within what Google likes.
I just can't understand why the rank so poorly. There are listed near sites that aren't even related to the search term.
I am not sure if you can get penalized for cross-linking, because if you link to a site (maybe another on of yours) that is relevant it is likely there to help your visitors, not just your rankings. And I am sure Google knows this, so they cant penalize you