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Ok, for our decided search strings, our main site ranks:
#2 on Google #1 on Yahoo #1 on Ask.com #2 on MSN
& while I know that SEO has nothing to do with your PR score, why would our PR3 site suddenly drop to PR0? I removed any unrelated links, & any links to PR1 or PR0 sites, yet this resulted in nothing.
If the links are sponsored, I guess you still want the income from them. Removing them would probably be the last thing you want.
Unless your sponsors base a large part of their advertising decision on page rank, I'd suggest you ignore Google. Just continue providing excellent service, and garner back links from satisfied customers. When enough of these back links happen, search engines automatically push you to their front SERPs.
Search engines are constantly improving their algorithms. Playing catch-up takes time and effort. But they all look for the same thing: great, relevant content. So give them that!
I pull the sponsored links off dream.in.code last week when we took a dive from a 5 to a 4. Could be unrelated, but wanted to play it safe. Working on deals with the sponsors now to advertise those links with nofollow or through a javascript redirect...won't be NEARLY worth as much but whatever.
From what I understand, there's been a wave of PR updates lately from Google. The last ones came in late October, where it appears that sites adhering to Google recommendations got their old PR back. I've even heard of sites jumping up in PR.
The use of the nofollow attribute in link tags seemed to be the main cure. Text link selling was the main cause of the tsunamis (check this ProBlogger article for more info).