Doc.
Offered a potential position in Eastern Europe last week; [not a real offer, just a potential proposition it seems] at a third of what I was previously earning, with no relocation to the new place (cost about a years salary I would guess to move); about 3 grades below what I was here.
The wife thinks I'd be better off working in McDonalds or perhaps Migros; assuming they give me job; like you many places consider me too experienced...
The IT market is tough right now. I remember getting several spontaneous offers a month from recruiters a few years ago (they would see my Monster.com profile), and this went down to maybe 6 a year.
This year, I've only received one call two days ago...
So yeah, I feel for you. It's a fighters world out there and anything you can do to differentiate yourself from others is important. I hope you're spending your free time self-training, improving your skills, speaking to your unemployment agent on how to improve your CV and how to approach companies, and it doesn't hurt to ask the recipients of your CV to comment on what you could have done better when contacting them for a position.
Good luck.