Peudobulb Shrivelling
 

What is wrong with this pseudobulb? It started shrivelling some time ago(can't remember exactly when), and is now a little soft to the touch. The newest bulb has been dropping leafs so I've cut down on watering. The plant's grown in full sun.

http://img267.imageshack.us/img267/5427/rimg0604.jpg
http://img375.imageshack.us/img375/5115/rimg0605.jpg

Your plant looks to be a Catasetinea of some sort. It's perfectly normal for the previous bulb to eventually shrivle and die. The new growth looks fine. All looks normal to me.

Kim

Might need a bit more water if it is grown in full sun. The leaves on the newest p-bulb have those white stripes still so I would not cut back on the water quite yet. Wait till more leaves drop and the white stripes on the leaves that wrap around the p-bulb turn to a light green and then think about starting to cut back on water. Your plant is still very active at this point and is not trying to go dormant.

Oh I see. That is good to know. Feel so silly now. I will water more and restart fertilization.

Is it necessary to cut the bulb out when repotting or just let it do it's own thing?

No need to feel silly! The plant is still alive so all is well!

As for cutting the bulb, just let it do its own thing. The plant is slowly drawing down on the energy reserves stored within, so cutting it off would deprive the plant of its hard fought energy. When all the energy from the bulb is gone, the bulb will shrivel up and turn crispy (paper like). Then you will be able to just pull it off.