Wow man... I've been following your story lately, and your latest posting just hit way too close to home... so I'll share with you my experience.In fact we're both thinking of going back to school. Come May it'll be three years since I gradutated college, and that's a long time to be out of the loop. More education may be my only chance to get a good job. That or digging trenches.
I was a systems analyst (MIS grad) with IBM when the whole bubble burst and jobs started flying overseas faster than anyone could say "offshoring!?"
I was searching all over the country too, and I even drove out to live in LA for 3 months confident that I'd find something there... and I found nothing (not even retail) and ended up driving allll the way back to NY after having gotten all settled in in LA... it sucked!! I was like pissed off and depressed and ready to kill anyone who gave me a the smallest amount of stress....
Yep... I solved my troubles by going back to school... I'll be getting a masters in may and starting a job that is FINALLY going to be something to be proud of, makin some good cash (for lego, of course).
My advice... get the MS. If your in IT, you almost HAVE to have one these days. The funniest part is that I didn't even gain all that many skills... I just learned some basic concepts. But the school and the degree opened doors to me, as a student, that my network and "contacts" just weren't affording.
Also, it's really really nice to be a student again, even though I have to pay for it all by myself this time... grad school is relaxing yet interesting work - and everyone will respect you for doing it... and you'll be sure to get a SWEET job when your done... I'm tellin ya!
You guys should come to my school (Syracuse U)... bad basketball team... but best IT school in the country man!
Anyway, sorry for the long post... but I really, really, really relate to what your going through... and there's no words anyone can say to make it better... so just relax and think seriously about the grad school option... an MS degree is something to be proud of for the rest of your life!