"Trouble in the Enclosure" is the first thread under the pacman section:
http://www.frogforum.net/pacman-frog...enclosure.html
You need to get the De-Chlorinator ASAP! Your frog has Tox-Out Syndromn (aka "toxing out"). The severe bloating and lack of appetite are symptoms of this. Basically, the chlorine and other chemicals in the water are building up inside the frog. If left untreated, his organs will shut down one by one and he WILL die. It is a slow and painful death. If you fix the water immediately he will most likely recover. When you get the De-chlorinator, soak the frog in lukewarm de-chlorinated water like DVirginiana said. This will help wash any residual untreated water off of him. You need to make new substrate using de-chlorinated water to expand it and change his water dish.
On other notes: You should still go ahead and answer the trouble in the enclosure questions. Read the pacman care sheet if you have not already done so.
No you should not be holding him except when necessary.
Is that divider glued down and sealed? It is hard to tell from the pictures but it looks like it is just set in there. If it is not firmly attached then it needs to be. Many people have had issues with the frog getting over/under/around a divider and attacking whatever frog is on the other side.
It would be best to get rid of those other decorations. When the frog is bigger it is possible that he could swallow one of them. As far as decor goes, all Pacs need for a comfortable home is a water dish and a fake plant or possible a hide (such as a half log).
Keep us posted.