Looks fine now back in results #2 and #3 for Epic Wallpaper BTW If you want to get back that first place you can add a few things to your content... you should add a h1 with Epic Wallpaper and a bold tag with Epic Wallpaper in it also in body add this to meta description Wallpapers are added to the site every hour at EpicWallpaper.com EpicWallpaper, epic wallpaper, to keywords meta...
The hompage was back for one day...I was on page 2 for "Free Wallpapers"..page 5 for "Free Desktop Wallpapers"...both words are thousands of hits per day. Without being indexed again and no changes to the site It disappeared the same night...MIND BOGGLING
Most likely reason is that you have outbound links with anchor that is a keyword over a threshhold. Google might think you are selling links. Remove outbound and file for the penalty to be lifted
Shouldnt be, my competition has 4X the ammount of outbound links and they ARE selling them hehe. I actually tried removed all outbounds links and waited to be indexed again.
Many webmasters have complained about ranking loss or such odd behavior in google since 15th December. Looks like an odd glitch for you which should get fixed.
Have you considered reworking your title tags to include the term 'free wallpapers' / 'free wallpaper'? Nearly all the web sites in the first page results for 'free wallpaper' have one of those terms in their title tag. Try something like... Free Wallpapers | Desktop Wallpaper | Free Wallpaper Download See what happens.
UPDATE: Google has increased my site to PR4 and I have redirected many pages that might have been mistaken for a homepage to the actual homepage but it didnt help. Ive tried some different titles as well as removing links again. The site returned to google for 1 week, dissappeared for 2 days. Returned again for 4 days, then dissappeared again for 3 more days. Many of these times I made no changes at all.