Pictures: http://celestialjellyfish.tumblr.com/post/89806977744

I'm really going crazy trying to figure out what's gone wrong with this tree. If it dies it'll be the second in as many years.
It's in northern california, zone 9, which has been quite dry but its on a drip system and gets a gallon of water every other day. It was planted around this time last year and went through last summer and winter just fine. It's in a metal cage to keep gophers out. There is sand bar a few feet down but the dirt doesn't have much clay. I've just recently put the mulch down, thinking if it was too little water then maybe that would help. I've tried less water and more and it just seems to get worse. It's not been fertalized.

If anyone has any ideas of something I haven't tried, I'd really REALLY appreciate it.