SEO help: Has my website been penalised by Google?

[Strah I]

Few months ago i finished a web page - after that i did the best i can to bring it on first page in google search results - unfortunately i couldn't do that - what i achieved is the position 16 (6th on 2nd page) which is not too bad

But - the worst thing - i did some changes to the code and content as the keyword density was about 26% - and i thought i will be ignored by google - after that my site disappear from search results ....

Can anyone check the code for me - may be you'll see where is the problem ?
here is a link to the web page http://www.farnborough-guesthouse.co.uk/

and here is a link - how my webpage was before http://mold-print.com/seo/

in my google webmaster tool - from 7 pages 3 are indexed

or if you check site:farnborough-guesthouse.co.uk - it will show up 5 indexed ....
I was trying to do do a optimisation for 'Guest House in Farnborough'

In yahoo search i had more luck - its 2nd on the 1st page

anyone can explain what could be the problem in google search ?

Thanks a lot

PS : the web page is unic(coded from scrath) also the content
in Yahoo search