It looks like the PageRank drops that we reported a couple of days ago (read Google Changing the PageRank Algorithm?) were indeed penalties being distributed to specific blogs.
The reason for the penalties it not totally clear yet, but Darren said that he got confirmations from two sources at Google that the penalties were being given exclusively for paid links, and not for cross-linking inside blog networks.
That would explain why many blogs recovered from the drop, including Problogger itself. Supposedly these blogs were wrongly associated with paid links, and Google reversed their PageRank to the normal level after realizing that.
The Google datacenters are still reporting scattered data, so it is difficult to know what will be the PageRank of some sites involved in the previous penalties (Andy Beard is trying to keep track of them).
The good thing is that most websites are actually seeing the PageRank update now, and many are going up. My other blog Daily Writing Tips went from PR0 to PR5, while Daily Blog Tips stayed PR5.
What about your blog, has it gained PageRank?
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