Is this a normal Google Dance, or am I slowly being Penalized ?

Hey, This is quite a long story, but ill try and cut it short.

So I got a 2.5 year old money site, was doing very well manged to get it to #4 in Google for some high keywords. - Affiliated site dealing in loans.
I made this project thinking differently from other site, "a site that could be my 100% income". Because its a big keyword, I paid for the domain for 5 years, set up a loans blog on the domain for 1 year with high PR related backlinks only so get it some authority, this helped get it to a PR3.
So after the year, i had trust from all major search engines, and therefore i am good to start ranking for high keywords. I done a whole redesign, I kept my blog as my sites articles, and started transforming it into a "money site".
Like i said i got it to #4 and stayed there for over a year, adding fresh content etc.. building new backlinks etc... all the normal stuff.
I had at least 2 people working on this site per day, and it was making a few k's each week.

3rd Feb 12:
My hosting was coming to an end, and I was using Joomla, so I wanted to change this, So I changed my host, and also had a brand new WP website with all old and new content waiting for my domain with a htaccess file moving every URL too.
It all went to plan, and my site was offline for a total of 45 mins.

8th Feb 12
This is the Google Dance part...?
Feb i lost all rankings after I put up new site, thought it was normal and it will be back in a few days, weeks max.
So after 1 week, I got it to half my traffic, building new links etc....

Now it feels each day is getting worse. I went from 600,000 impressions to 30,000 and today its 15,000.
I have lost 97% traffic and anything I do is not getting nowhere.

All links pointing to this site are quality links, no blog networks, no spammy comments, no spammy forums, all good and relevant.

I have paid for more links in February, in total 10 PR7 finance blogrolls.
They are all legit and not connented in anyways.

I thought they might bring me back to where I was, but nope, its getting worse.
I can't find my site for my MAIN keyword anywhere in google, only subpages on page 13-20. My site has over 2000k pages, and about 300 are converting. I have over 1700 backlinks from unquie domains showing in my webmaster tools and more in Alexa.

This has been going on since 8th Feb, and I don't know why.

I know what a Google dance is, and not sure if its OK for it to go on this long, and feels like my site is still not thru the worst yet?

For the last week, my impressions have been rising 250 a day that's it.

My best inbound page is still holding a place at 10 but not really doing much, could be there for a hour then gone the next..... :confused:

Is this a Google dance, or am I slowly being Penalized..... How can I find out what's going on, any tools that may help me?

How long will it last? or how long can it last?

Thanks!