I think you’ve been penalised by Google for paid links. Your Smorty post would be enough to do it, as you link to Smorty and have presumably been paid for the post, but you don’t use nofollow on the links. That’s against Google’s Terms Of Service.

If you want to get your toolbar PR back, you can add nofollow to the links in that post (if your contract with Smorty allows you to do this) and then request Reconsideration from Google (on right hand side of Google’s Webmaster Tools).

I was slapped by Google too, but I was using PayPerPost. With PayPerPost, you have to leave the post as is for 1 month. It was after a month, so I added nofollow to the links and requested reconsideration and got my PR back..

Good Luck.

please read my insights here on this very issues:
http://www.meroguff.com/2008/03/googles-latest-pagerank-updates.html

btw, nice to see you on blogosphere.

Where do you check your PR? I have checked several sites and they still have the same PR.