Hello.
I recommend checking the roots and look for ones that have rotted. The dead roots should be removed to the best of your ability.
Right off the bat, I can probably say that it may have been over potted.
Another suggestion is to clean the orchid up as best as you can. Clean orchids look better and they tend to have less of a chance of contracting bacterial or fungal infections.
Remember, bacteria and fungi usually proliferate in rotting organic material.
As far as addressing your Phal's wrinkled leaves, yeah, it's from dehydration, but...I think the real culprit is not that you don't water enough. I can see you water quite a bit, as the bark is a very dark color, (almost black in fact).
I think the roots on your Phal are severely damaged, and therefore can't take up water.
As far as the kink on the leaf is concerned. I think that the following is what may have caused it...
The source of the light may be where the leaf with the kink was pointed at. In other words, the crown of your Phal may have been pointed away from the light source. Instead, the tip of the leaf that's kinked was pointing in the direction of the light. Am I wrong or am I close to the truth?
If I'm right, then you should be positioning a Phal's crown towards the light source. The crown is where the new leaf comes out.
In other words, you see the dried up flower spikes on your Phal? That part of the Phal should be facing the room. The other side should be pointing towards the window.
Check this link out it'll make sense. These are pics of Phals growing in the wild:
http://images.google.com/imgres?imgu...DofktAP_2uSIBA
Thank the person who took the pics, "Sarawak Lens", they don't belong to me.