Rodney : It's somewhat of a million dollar question this one, but I'll take a stab.
Firstly, PR is immensely devalued, and I like to think of it as a bit of a magicians white glove : being waved about to keep your eyes on the PR score and away from what's really happening, which is rankings and traffic. I know you've checked it with other sites and aren't relying on the Google toolbar, but the most important thing is rankings and not PR. Are you getting less traffic? Have those pages ranked lower for previously well-ranked search terms? Is your search traffic affected in any way at all? This is more important than PR for you as a site owner (advertising buyers notwithstanding)
On the other point, the Google terms of service expressly state you shouldn't be selling/buying links. Leaving aside the whole discussion about this and how it applies to adsense : is it possible you have been penalised for selling advertising by way of links? Clearly your ad inventory buyers are keenly aware of your PR where their pages are located. Is it possible a competitor has reported you for sellign links, and has resulted in you being penalised in Google?
I doubt this is an indexing problem, you can double check by scanning your logs and looking for the Googlebot and seeing if the frequency has dropped off, or if it has been receiving 404 errors or anythign like that. Similiar info will be available from the Google Webmaster tools if there are crawling errors.