the site was too new to get a rank on the last update and got a pr3 on this update.(not that it matters in this story) i got it ranked #4 on a 130k key word and i think it was like on page 4 of of a 100 million keyword. it had a handfull of links all year,but some of them were pr4. couple months ago i did a directory submit service of 600 directories.a month latter i did a few link exchange,but not many. in the beginning of this month (might have been a google.com update) every keyword that was ranked in the top 10 is now result 600-800. that #4 keyword is now #664 it didn't get alot of se traffic to begin with,but it was alot better then the 2 visits a day it gets now.
It sounds like this is not related to your links but to the google update that wiggled so many PR and SERP positions...
In September I did a directory submission (1000 directories) with one of my sites (which was PR2) and had only some natural links. In the PR update, it went from PR2 to PR0. Luckily, traffic has not changed though.
Since when? If its just since today than i have seen some fluctuations in SERPS. More than likely nothing to worry about.
Links from Directories are not so much usefull now After last update tons of direcotires lost their PR and power of links are very low... probably this is the reason that You your site drop in SERPS
yea..I heard that linking with related-content site gives you more advantages rather than submitting to directories.