Job Search in Austin is a mistake.....
I lost my job back in October, now I am about to lose my vehicle and my apartment. I cannot find a job in this town. I have done everything from running a tech team to managing accounts to other management (I am trying to keep the company names out of this, but they were all high-profile jobs at very high-profile companies). When I apply for something at my level, I just never hear from anyone again, and nobody returns my calls. I have been told flat out by the few that I do get hold of that company policy prohibits getting any real reason why I was not selected, as they are scared of laysuits. Lawsuits? I just want to find out what went right and what went wrong so I can do better the next time. When I apply for something below my level, all I get is the "We'd love to bring you on, but you are just too overqualified." I just applied for an 8 dollar an hour job as hotel security and got turned down after what they called one of the best interviews they ever had. To add to it, I have met with a lot of resistance in Austin due to the fact that I have military experience on my resume. If I had known it would be like this, I could have moved somewhere else when I still had money to do it.

Your prior military experience should help you find tech jobs in San Antonio, which isn't too far away. Yes, the initial commute would be awful, but it would get you back on your feet. SWRI is hiring, that much I know. If you have or had a security clearance, that's even better.
I have applied in SA as well, with little luck. SWRI seems to want more along the lines of coders and engineers, which I am not. Right now commuting to SA from N. Austin would probably cost more than the job would pay. If I had known the resistance this town had towards the military (honestly, its more if I had just paid attention. Face it, Austin makes no secret of it.) I probably would have moved to SA or Dallas at the first of the year.
Unfortunately, as you already know you are just running into the poor job market here in Austin lately. I've run into plenty of the "resume black holes" as well, and you are right that many companies no longer are willing to provide any feedback for fear of lawsuit. I'm not sure there is anything you can do about that, so you will just have to be introspective to figure out how to improve.
And although I am not a vet, I've seen some of the negative attitudes amongst particularly younger people around here towards anyone who has been in the military or even looks it. You may be able to reduce some of that by changing your resume to de-emphasize your military service and if you have a short haircut you might try letting your hair grow out a little, maybe grow a goatee and try to go for a little of the "Austin look". Its sad that such superficial things can make a difference but they shouldn't be underestimated.
Some suggestions for non-tech jobs that your military background might actually help you with would be security/loss prevention at places like Beast Buy, etc. The overqualified thing does really stink when you really need work, so you may want to make a "dumbed down" resume for use when applying to "throw away" jobs.
As for tech jobs when things are as tough as they are now you just have to be persistent, and leave no stone unturned as far as networking and applying for everything that is out there. It isn't that there are no opportunities at all, its just that the competition for what is out there is very intense because there are so many people looking.
So far almost all my success in a job search has been through personal contacts. Don't just assume that applying through job boards will get you anywhere, go out and meet people and work your network. When you talk to people, don't just tell them that you're looking for work, tell them what kind of job (exactly) you'd like. Right now my active job pipeline includes a founder position in a new startup that's looking for funding (and if it gets it, I'm in); a sales engineering position for one of my competitors in the business I'm shutting down; a contract-to-hire with a friend of a friend and finally a Sales Engineering position that I found online. Three of these five positions have moved forward in the pipeline despite the fact that I've been out of the country for almost two weeks and not looking at job boards.
Again...work your personal network. In a down job market, it's the best way to get your foot in the door.
Oh, I know. Admittedly, I do not have much of a personal network, as I guess I'm just not a very social person, but I do talk with those I know at length about what I'm looking for and what they know of in the area. It seems that those people I know do not have a whole lot of contacts themselves in the area.
You probably need to focus on finding something to get by on now and then start working on building your personal network in earnest in order to find something suitable to rebooting your career. Start by trying to re-connect with as many former co-workers as you can find and any other acquaintances you can think of. Then consider taking advantage of the networking events hosted by Austin High-Tech, Geek Austin, etc. You might also want to join some groups on LinkedIn that are of interest to you and perhaps look into some local user groups for technologies you have worked with or are interested in. User group meetings and/or mailing lists can be a great way to connect with people who may be able to get you an "in" to companies that are hiring.
Anyway, since nobody else has said it, thanks for your service, and I wish you the best of luck in your search. Please keep us up to date on how things go and don't be afraid to ask questions or use the forum as a sounding board... or maybe even just a place to vent a little. A lot of us know what you are going through.
If you are seeking jobs that you are "too qualified for," update your resume to highlight your past experience.
Feel free to send your resume to me, I will assist you to the best of my knowledge.
I know you will meet the best group of technology professionals in Austin at the door64 networking event. I am new to Austin as well and door64 is the best one I have been to.
Respectfully,
Brooke Anderson
brooke.anderson@modisit.com