Seattle/Redmond/Bellevue is M$-land and lots of small/medium shops do look for newer/cheaper people (plus there is no state tax, so that $40K would be somewhat worthwhile). Start browsing Dice inside out and applying left and right. New York was big, but I wouldn't move to any of the major north east metros at this time (but, if the opportunity is there, go for it). Another Website I'd look at is indeed.com. Subsequently, look at Silicon Valley and San Diego (but the standard of living is super-high, so don't get tricked into accepting a $40K rut), AZ (Phoenix), FL (Tampa Bay), TX (Houston and Dallas), PA, VA (lots of defense-related projects).
Also, a lot of big companies and consulting firms are tired of recruiters and have stringent policies on posting jobs on sites like Dice and Indeed. So you may also want to sit down and start applying to some of these bigger IT companies directly on their Website (if you're not already doing so).
As far as I remember, I didn't even break even with any of my interviews until the eighth or the ninth time. I learned it the hard way, too - wasn't applying throughout the States. But as soon as I did, the frequency of calls increased; it is funny because I was willing to move, but for whatever reason was clinging onto that thing called family. So keep trying, and pretty soon you'll know what to expect in the interviews (assuming you're applying for similar jobs). I'd seriously look into what Crusty said above - if you don't have the comparative knowledge and experience on paper, take your laptop with a program running in the background and present (make sure you practice!) the work to the technical people. Show them you are fluent at what you do. You'll be amazed as to what kinda crap people put on their resume... last month we had a guy claim he knows SQL Server 2003 inside out. In any case, being different and creative definitely helps.
And you shouldn't feel hesitant about sending thank you emails - no matter how many you have to send. As a side note, I know it is hard, but quit being so negative about things... there are people with years of experience who aren't even receiving calls... you're doing way better than them.
I am curious to know: you don't want to work in Operations? Or is it that you fell in love with C# ?