B/c my sites started off at PR3 and PR2. Now they are PR0. I checked Yahoo Site Explorer and the good links are still there.
Are they still in the Google index? Any site can drop to PR 0 if it gets booted from the index. It can drop even if it's in the index because the requirements for a certain page rank can change.
Of course it can drop. If the pages with your link go from example a strong PR5 (nearly a 6) to a weak PR5 (nearly a 4) or they add alot of other outbound links the value passed to you will decrease.
First of all, there is no site PR. PR is for a single web page. Everything can happen to your PR even the incoming links are intact. For example, Google may decide to devalue all incoming links from directories or blogs..