Aces Low
Don't give up! I didn't start studying for my Commercials until I was 42! Ten years later I was in the left seat of a Turbo-prop, but it was a long slog through the lean employment 90's. A similar situation exists now of course, but if you can make enough money instructing and maybe developing contacts, you'll get there eventually.
Your obvious 'best bet' is going to be the Commuter Turbo-prop airlines, as there's normally more turnover there when things improve, and they'll look on your age as a possible advantage in that you're more likely to stay.
Things are definately moving now (my company are now hiring again albeit in fairly small numbers), and once this Iraq business is settled, Airline expansion is likely to resume it's course.
So keep writing those applications, but more importantly, try to get to know some people on the inside. Good luck