Did your traffic actually drop or just PR? Here is my bit of advice for the day, and it's all I will give.
Build WordPress.com blogs (yes the free hosted ones). Make them keyword rich (not overly), bold and italicize those key words and then let them sit for a week or two. Do it a bunch of times. Watch traffic build.
Wordpress.com hosted blogs often rank faster and quicker than a standalone script on your own domain/hosting. The google has much respect for the WP
