You are right man. I have also seen this topic one or two days ago. Some had post this link and says it will provide free back links, Thank god i have not include my real website in that back link tool. I have doubt about this website. May be it will penalize websites. So be careful
Normally, it takes a LOT of links being built in a short amount of time to get a substantial penalty. A LOT means A LOT like 200 or more. Directory submits, if they are spaced out, should be okay.
Wow, that really stinks. I was going to submit my sites to the same place when I saw a topic on DP about it but I just got lazy and decided not to. Hope your site regains it's spot but I'm pretty sure it's something else.