I'm an undergrad about to graduate here in December and I can't express how frustrated I am 'weeding through' all the .NET, C#, ColdFusion, J2EE, ASP jobs within 25 miles, not only on the obvious job boards, but on my School's Engineering job board as well.
I could very well be looking in all the wrong places (openings within my commute), but if I can't find an opportunity I can properly invest my talents with while working along side other developers/designers than going to sink my time learning a language I'll probably end up hating.
Keep working on side projects that do interest you, and make them public, so that it's always easy to show prospective employers what you can really do. Spend your time boosting your skills and having fun, even if your first actual income comes from something completely different, like mowing lawns.
One thing about programming is that it can be done from anywhere; try applying for a job that's outside your local area, and see if there are any that allow remote work. Some companies won't offer this unless you have years of experience, but some might do it anyway; it all depends on how good they think you are.