how do you KNOW there is an algorithmic penalty??? and do you have any directories in mind?? as i've heard they might be the cause of the problem..
Because I looked at your anchor text. You've over optimized and that has most likely triggered your penalty. And by directories I do not mean the ones that people are slangin on here. Think authority. dir.yahoo.com, botw.org, Business.com, joeant.com .... ya feel me?
got it on the directories.. but aren't they 'paid' directories.. i didn't think google liked you to pay for links.. also, what anchor text stuck out to you as the most over optimized?
In good paid directories, you're paying a review fee. You're not paying for a link. This is all covered in the Google Webmaster Guidelines. I'd suggest reading those; they're full of answers.