50 out of school for 1 year and still no job

So, I graduated last May, with honors, at the age of 50 with my ADN; passed NCLEX and received my license in August 2012. I was able to land a job in LTC through a classmate. After being there for 2 weeks, I felt that it was not in MY best interests to continue working there and I quit. Since then I've filled out hundreds of applications, gone to nursing job fairs, and still no job. I've had 1 interview. I start my RN-BSN program this August and will be done summer of 2014. I realize that the Chicago job market is saturated with new grad nurses, but even the students who barely passed and/or didn't have any previous experience are working; many of them have 2 jobs and some are already looking for their 3rd job. I'm so frustrated. Oh - and I've been volunteering at a free clinic since September of 2012 and now have just been informed that they will no longer allow anyone who is working there to be used as a reference on any job applications. Suggestions?
The big metro areas seem like the roughest spots for new grads right now - are you able to move, or do you need to stay where you are? I got hired for my dream unit in a hospital in the middle of nowhere in the deep South while I've been watching my classmates "settle" for jobs they didn't want or continuing their job search with no luck. There is a lot of merit in looking into hospitals in rural areas.
Do you know why the free clinic made that rule? Seems like such a slap in the face. Work for free but don't expect us to lift a finger for you when you need it. Maybe there are liability issues? Volunteers claiming to have skills they really don't? Not being able to appraise performance?For a year after my graduation my volunteer work was really the only thing I could put on my r�sum�. Still, the experience was real and legitimate despite not getting a paycheck.