The Pit: For me the pit represents life at its lowest. When you just believe that things cannot get any worse it does. It is like being in the midst of the recent hurricane Katrina only for Hurricane Rita to come along before you can even catch your breath.
The Prison: For me the prison represents bondage. Anything that has you bound. Any situation that is preventing you from being free, whether it is physical, mental, financial, or emotional, can be your prison. Ungodly alliances or relationships may be your prison Your prison can be of your own accord or as with Joseph one that satan has planned for evil and good will transform for the good.
The Palace: For me the palace represents when God has delivered you from your pit and your prison. He has raised you and blessed you to the point that all of your detractors have to realize that in the midst of all of your trials and suffering God was with you. It is a point where you become a living testament that God's word is alive and true. People then want to listen to what you have to say because they know that you are one of his chosen.