Advice and Help with my SEO?

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Hi people,

I was wondering if people here could lend me a hand with the SEO on my companies website.

I run a web and graphic design company in Dorset, UK. Working mainly locally and trying to target local businesses with our services.

the URL is http://www.aztec-online.com

I do have a reasonable SEO knowledge, but I am no expert. I will go through the steps I have already taken to improve my SEO and if there is anything I am doing wrong, or missed out please could you let me know.

Currently we dont rank very well for many keywords except the company name 'Aztec Online' and 17th for 'Web Design Wimborne'. The main keywords I would like to target are, 'Web Design Dorset', 'Web Design Poole', 'Professional Web Design', 'Affordable Web Design' and all these but for graphic design too.

This is what I have currently done on the website: -
Worked on site content, getting a keyword density of about 5 to 10%
Optimised the image tags, with alts, filenames etc
Optmised the Anchor tags, with titles and keywords within them as well as keywords in url
used keywords in title, header tags
made sure my keywords appear near the top and the bottom
made sure google can see all my links
bolded keywords
supplied an address to help it rank bettter locally

I am currently rebuilding a new website at http://www.aztec-online.com/AztecOnline2, which I am going to apply all the correct changes to in order to have a better chance of ranking well.

I have also started to try and build up links by doing the following:-
including a link on every clients website web create
a small amount of blog comments
article submission
related directories and local directorys
google local maps
email marketing
am about to start with a press release
finally a few web design assoications

I dont know what else I can do, and I don't know how long it will take to start ranking. I have pretty much no budget for SEO, but I am also using AdWords.

Can I get some advice from some of the friendly experts on here?