Keyword Density #s

I used the keyword density analyzer at
http://www.searchengineworld.com/cgi-bin/kwda.cgi
to analyze the keywords in my test site (not yet live)

My top keyword phrase that I am shooting for has a keyword density of
10.77% - 14 out of 130 2 Word Occurences.

I googled my keyword phrase, and the top 2 have a page rank of 10, so I
ignored those. The #3 page gives an error. The #4 page is interesting IMO:
5 Occurrences in 7 2 Word phrases - giving them a density of 71.43%

#5 has a keword density of 7 in 87 occurences - 8.05%

What is a good keyword density to shoot for? I think that #4 is just a
simple form of abuse - I checked out the page and it's a series of links
- you can find results for these keywords at these different links, etc.

Should I reduce the amount of text in order to emphasize my keywords
even more?

I've targeted them in title, meta tags for description, keywords, and
title. In H1 tags, in paragraph text, and in some of the alt text for
my navigation images (where it actually is relevant).

I'm a little wary of posting links to my test page or my keywords
because my competitors have been doing things like copying our
promotions lately (and doing things like calling us to schedule
appointments without even bothering to block their caller id!) and at
least one has hired an SEO company - so I'd rather not key them in on
what I'm doing until I've released the site.

thanks in advance for your help!