Well, its hard to get very good nutrition on that few calories. I'd be a little concerned your metabolism might slow down. What do you mean you were getting "worst by the week"?

Starvation mode is just a theory, I think. I don't think you'll find any hard and fast facts about it.

I am kind of curious though, seems like eating so few calories, you'd lose a LOT of weight but I only see a weightloss of about 7 pounds.

As far as your system rebooting, I think our metabolism is linked to your muscle mass. If you were losing muscle mass because of your low calorie intake, you'd probably have to work out to get it back.