Yes, the google dance is scary. My site is pretty new (not even 2 months old) and I was monitoring it's ranking for my main keyword in exact match search. It was slowly moving up but now the home page is not in the results anymore

. But all my pages are still indexed when I do a site: search. I'm happy and relieved to hear Tim say that this is normal and everything should get back to normal if it's still indexed.
My site is a wordpress blog and I used to have a static page as the homepage and this page was ranking. I decided to show the latest posts on the homepage and this is when the ranking disappeared. I use the all in one
seo plugin so the home page is still optimized for the keyword. But maybe google is trying to figure out what to do with this sudden change....I don't know?
I'll make sure to use different anchor text links and link to different pages, but I am pleased to see I'm not the only one experiencing this google dance!!