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My site was hit by Google Panda on June 16th. After that I did everything I could to de-index and de-link the bad content.

According to some reports, the google panda algorithm was run again on July 26th. My site was not affected in absolutely any way. Still penalized - no more no less.

Is it possible to get de-penalized? This is really damaging/killing my business as I had spent over 1000 hours investing in SEO for this business.

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Consider we are the 27th, it is probably too early. Changes always take a while to propagate through Google's infrastructure. –  Itai Jul 27 '11 at 15:10
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Panda isn't a penalty that is applied to a website. It's an algorithm that weeds out low quality content. What you're probably experiencing is due to a lack of quality content on your website. The pages within your own website can be a valuable way to improve your site's pages' rankings due to cross-linking. If a large chunk of your content is now removed or devalued by Google then they are no longer helping your other pages rank well.

So, there isn't anything you can do to remove the penalty since it doesn't exist. Instead you need to replace all of the deleted or devalued content with new content that is high quality. Then you need to acquire quality links to those pages and also liberally interlink between them.

Then the waiting game begins.

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you are totally off on this one. Panda is not an algorithm change. Panda gives a site-wide penalty. Read up on it. I have de-indexed the bad content pages. I waited. New panda rolled out on the 26th. Nothing happened with my site. I don't know what to do next. –  Genadinik Jul 27 '11 at 14:30
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I disagree it is an algorithm change applied manually at present. Also there is no guarantee making all the recommended changes will get any negative effects lifted next time an update is rolled out. –  Matthew Brookes Jul 27 '11 at 14:52
    
Read this to understand how panda works: searchengineland.com/… –  Genadinik Jul 27 '11 at 15:10
    
@Genadinik, if I may quote from that article: "For anyone who was hit by Panda, it’s important to understand that the changes you’ve made won’t have any immediate impact." and "After enough time, the Panda penalty might be lifted." –  DisgruntledGoat Jul 27 '11 at 15:45
    
Also just because that article says it's not part of an algorithm change, doesn't mean it isn't. It still factors into Google's ranking algorithms. –  DisgruntledGoat Jul 27 '11 at 15:49
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