I'm at about the same point as you. I just want to make a very generalized observation. There are so many people now who all want to "tele-commute" and advertise themselves as "programmers". It's just a glut. To make matters worse, most companies are looking offshore to fill small programmings jobs.

So what should you do?

Stop thinking in terms of "how do I get someone else to hire me", and start thinking "what kind of business can I start, which will let me utilize my own skills".

Think big. Could you start importing from China, warehouse the stuff, and sell it on the net? Is there some other skill you have, like making something REAL, and offer it on the net.

I saw this tv news segment on this lady who offered herself as "a tele-commuting girl-friday". She had a few clients, pre-scanned all emails for them, shopped online for them, and was in the process of hand-filling out christmas cards for some busy doctor. The doctor UPS'd a box a cards, and an address list to her. She charged $50 per hour.