Guitarmanic, there are a number of problems with your mechanism - primarily a) You have Pd(III) intermediates, and b) watch your charges and implicit hydrogen - if you follow your curly arrows, your intermediates would have isolated charges and pentavalent carbons.
Well done to Rory, who is essentially correct. An allene is not formed, the alkyne undergoes hydropalladation, rather than loss of methoxide.
The chemistry is Trost and Shi's "zipper reaction":
LinkI have shown the general scheme first. Following hydropalladation, intramolecular carbopalladation of the alkene forms a 5 membered ring, and beta-hydride elimination reforms the alkene in a Heck-like transformation.
In the second scheme, following the intramolecular carbopalladation Trost's alkene does not have a beta-H, but there is another suitable alkene for further intramolecular carbopalladation. So, a series of seven sequential intramolecular carbopalladation reactions constructs seven cyclopentane rings - it is only when the Pd reaches the final alkene that there is a beta-H to eliminate.