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Chris. ->> Links are advertising NOT optimising!! <<-
Indifference will be the downfall of mankind, but who cares? Code Samples | People Counting System | Bits & Bobs
rankings keeps on changing...you should keep in mind that SEO is a continuous process and that your competitors are doing everything for them to outrank you...
Chris is right, Look at only traffic and conversions. In reality there is little difference between ranking first and 5th, If your result accurately reflects what the searcher wants they will click it.
Obsessing over rankings by searching your keywords on a daily basis is a completely unproductive use of your time.
In addition to what Chris and st0x said, rankings will vary across datacenters and even across servers in the same datacenter. So what you see will probably not be what I see will probably not be what Bob sees will probably not be what Sally sees.
The only thing you can check to determine how well you're doing is your site stats. Are you being found more often (by everyone other than you)? Are you being found under more keywords? Are you attracting more traffic? Are you converting more?
Ranking keeps on changing, don't worry concentrate on SEO and keep an eye on what your competitor is doing for getting better ranking and try to overtake him....
Be in touch with SEO practices...