Sucks, don't it? Google isn't perfect and there are still many flaws that let sites like this rise to the top.
I've seen this happen many times (especially in the more competitive industries). This is the difference between black hat and white hat seo.
White hat route: keep providing good material, get higher quality backlinks and eventually you'll overtake him (and the results will be more permanent).
Fast & Risky Route: Looks like he just did a big social bookmarking blast to the sites. You can find these services around the web and order them for yourself (get a link report first and see if the sites match up). You'll be on even ground but the downside is the risk of going under next update.
Best of luck,
Oleg