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Like many others here, I had crosslinked these sites (to excess, in Google's opinion), and they were duly penalized. A few months passed with no recovery, even after the crosslinking was removed.
Next step: I put up a robots.txt blocking Ms. Googlebot from these sites. (Only Googlebot was blocked. These sites have continued to enjoy nice positioning elsewhere.) I let this go for two months, then a month ago, I removed the robots.txt.
Today, I discovered both sites are back in the Google index, with PR5 on the homepage, PR4 on the inside.
That's interesting in its own right, but check this out. I have some other sites which were also caught up in this penalty. I never blocked Googlebot from them. Even though they enjoy better inbound linking than the two recovered sites, they have only PR3 on the homepage, PR0 on the sub pages.
Lesson? It could well be beneficial to drop out of the index for a month or two using robots.txt. It would appear the recovery would be far stronger upon your return. Me be a happy Beachboy! :)