Here is some very informative information regarding the Google Panda Algorithm Update:

What we know Google is looking at with the Panda update:

- User comfort level in the trust area (think credit card/medicine comments)

- Is it considered authoritative (this would apply some indication of expertise on topics covered, I would think)

- Is the content quality good enough for print? (I’ve seen plenty of horrbile stuff printed)

- Are there too many ads? (How many are too many, and does the ad network matter?)

- We know Google has its definition of what could be considered low quality

- Google uses a “classifier” to draw a line in the sand

- We know that so far, Google has not used indications from the Chrome Extension (emphasis on so far. Google hinted in the past that this data could potentially be used to tweak the algorithm).

- Google looks at feedback, at least to some extent

- Based on comments from Cutts, Google will tell you why your site dropped (getting that communication flow going may not be the easiest thing to do, but I have personally witnessed Cutts sit down with someone at a conference and look at their site with them.)

- The algorithm can still be gamed. It can still be optimized for. (If you were hit by the update, there are things you can do to get back in Google’s good graces. In other words, you’re not necessarily banned just because of your brand.)

- Most of the changes in rankings will be done algorithmically, but Google will take manual action in some instances (see JC Penney)

-If you use any auto-generated content keep it separated from the original high quality stuff, and block it from search engines. Google’s John Mu said recently, “If you do have such high-quality, unique and compelling content, I’d recommend separating it from the auto-generated rest of the site, and making sure that  the auto-generated part is blocked from crawling and indexing, so that search engines can focus on what makes your site unique and valuable to users world-wide.”

To read more information about this update, click herehttp://bit.ly/GooglePandaUpdateInfo 

Crum, Chris- “Google “Panda” Algorithm Update- What’s Known & What’s Impossible”-3/4/2011 http://bit.ly/GooglePandaUpdateInfo :