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If coming from a 404 page, the link does not matter. I am not sure that means that Google did it, so I would show the 404 in any evidence you send to Google re resolving the issues. For getting reconsideration, you need to show you did all in your power to remove the BS links, etc. Keep a log. Send it all. Good luck,

No, still not fixed really do not know what to do next.

Zack10 are you ranking on other terms still or is it just this kw?

Also Karl, Alexa does a fairly good job at tracking inlinks with referring URL's which is pretty helpful. Your site is here: http://www.alexa.com/siteinfo/wholesaleclearance.co.uk And of course Open Site Explorer here will give you some details as well.