question what is the current difficulty?
2 minutes ago it was 0.3... now its 0.0003.. thats quite a drop
*edit* its gone back to 0.36 a minute later.. i wonder if my wallet is as confused as i am ..
No, the 0.0003 is the PoS diff you see. PoW diff does not go that low.
If you have a miner running (such as cgminer), it displays only the PoW diff.
interesting.. everything is slowly moving back from stake.. to balance...
not sure.. why or how though

It does this for me when it is calculating interest on those particular coins
This is the pos block. When a pos block generated, it took those coins in the balance, that contributed to the generation of this block (by its "coin-day"), it remove their coin-days (reset to 0), then put them in "stake" (thus subtract from your balance), also add some "interests" to the "stake" (so the amount in "stake" will be greater than what is subtracted from the "balance"). The coins in "stake" will then "mature" as it did in the PoW mined blocks. After they are "matured", the total will be moved back to "balance", so they can be spent.
I have a question about how the coin calculates its changing reward structure.
if
mining payout will be halved every 90 days (259200 blocks)
when I look at blockchain its giving blocks # to PoS, so does this mean PoS blocks count towards this? or is it calculating it independently, and how to see when this change is approaching? (reward halved to 512-1024 grains)
also does this affect total coins generated in the same way? ( I assume not)
The halves apply only to PoW blocks. The PoS block is calculated from "coin-day" you have and is fixed at 5% annual rate, it won't be halved.