Comment CONTACTS! I second that. (Score 4, Insightful) 472
I am in much the same boat. My branch of the industry went from garage shops to IPOs to conglomerates. The hiring process went from people-in-the-know to armies-of-PHBs-working by the book. The number of potential employers went from hundreds to a handful. The workforce went from top-notch locals to armies of adequate, semi-adequate, or inadequate H1Bs.
I had been a pioneer and well recognized by other actual techies - even those that had gone on into management or entrepreneurship. But after catching a layoff when the conglomerate deemphasized its new acquisition's function, I went from highly-paid pan-expert to 17 months unemployed due to the same HR-is-a-brick-wall for non-commodity heads effect.
I finally ended up contracting at a long-running garage shop in a niche market, a position found through a contact who had just watched them have a project almost fail for lack of a person with my particular skill set.
Meanwhile I'm finishing the degree via "distance learning" through an accredited institution. By the time the contract runs out I hope to have that checkbox checked. (College is a LOT easier when you don't have the draft board trying to send you to Vietnam and you can do the classes online when you're free and alert, rather than at 8 AM when you're a night person.)