Ok... This is getting more and more baffling as we speak.
So, a day or so after this discussion, i did a site:link-juice.co.uk search and saw that the site was being indexed again. I went to webmaster tools, and saw that it had picked up the proper robots.txt (discplayed in my first post).
Today i've done the same search, and we're down to just 2 pages indexed again. I've logged into webmaster tools (prepare to be confused)...Google says:
---------------------------------------
robots.txt URL http://link-juice.co.uk/robots.txt
Last downloaded November 26, 2007 3:55:50 AM PST
Status 200 (Success) [?]
---------------------------------------
It then displays the robots.txt file (the above). I can test this file in webmaster tools and all pages are allowed. However, when you visit link-juice.co.uk/robots.txt, its gone back to:
---------------------------------
User-agent: *
Disallow: /
---------------------------------
I logged into wordpress and went to privacy to see that it still says:
"I would like my blog to appear in search engines like Google and Sphere, and in public listings around WordPress.com. "
I'm not usually one for swearing in three letter acronyms, but WTF?