On a thread on the google webmaster blog there were a couple of suggestions about panda recovery that seemed plausible and relevant to my situation, I was hoping for second opinions:
1) Interlinking to a subdomain from the main menu of a site (and also from the main menu of the subdomain back to the parent site) can be seen as an inter-site linking scheme and cause penalties, and perhaps also carry a panda penalty from the subdomain back to the main site
2) Too many links in the text of a page can cause problems e.g. a category page about a type of widget where almost every sentence includes links to detailed information pages about the various aspects of that widget (made up example: main page New York, links to Empire State Building etc - i.e the sub-pages all stand alone as quality pages) up to about 100 links on the category page.
Cheers