Not really sure what to do now,you think the seo lads not looking after me?
Not necessarily. This is such a landmark update that no-one could really predict the implications.
Although the sentiment was understandable, the method was so drastic that many sites have been punished for doing nothing wrong. You may find they roll it back a bit at a time to lessen the impact on "innocent" sites.
Gary's point is really scary.
The cornerstone of Google's search engine (their "innocent until proven guilty" rule) was that incoming links could not harm you. This was to stop competitors "spamming" your site with dodgy backlinks.
Since the update, it looks like this action is possible at the moment. One of the top (totally ethical) SEO guys has had his site attacked in this way recently and has seen it plummet.
As for SEO at the moment. Just make a really positive attempt to do nothing until things settle down.