Well your site isint banned in google if its under site: domain.com
Thats a good thing.
There are many factors that go into ranking a page in google. Having a domain name with the terms isin't enough.
Simple tips to improve your ranking:
Make a page for the surfer and not SERPS
Code the page using proper HTML so that the spider can crawl it properly
Have relevant content pertaining to the site in question
Have a site map/easy navigation for all the pages in your site
Get links from RELEVANT websites for your CONTENT, who cares about PR. PR will come if you follow above rules.
There could be any number of reasons (not limited to the points above) that could cause the .com to rank higher than yours.
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