Dropping from .7 to .4 to .0 would have prompted me to ask the lab to verify/retest that .035. I would want to suspect it was really .35 (not that you misread it, but that they misreported it), and in that scheme, .2 is a progressive improvement.
My best wishes for the next steps.
Post Edited (142) : 1/8/2012 1:49:40 PM (GMT-7)