Larry - Forget about the Pinewooods of the world - for now. My theory is to ignore any venue that chooses to ignore me. You can bitch about it, or you can make yourself into an entity that people can't ignore. You create your own music, you may have to create your own market, too. You've already begun the process, if you're putting out your own CD's. Take the next step.
Create your own places to play. Find a hall that you can rent on the cheap. Find a small, independent room (coffeehouse, church hall, bookstore) that is willing to put you in on spec on a Sunday afternoon or on a night when nothing else is going on. Find public areas that will allow performers, set up and play. Publicize the shit out of everything you do. Build a fan base. Build an e-mail list. Send notices to publications, send reviews, get friends and band members to send letters. Let the whole metropolitan area know that you are there!
Oh yeah. Get someone out passing the hat and working the crowd (sell CD's, pass out gig notices, band info, etc.) while you're playing.
This approach doesn't generate $100 per man to a five piece band. You'll have to either get the band members to buy into a long term approach or say goodbye. You are committed to your music - committed enough to put your personal money behind it. If your bandmates aren't, treat them like the mercenaries that they are. Thank them, let them know that you'll be glad to use them on a "contract per gig" basis when money gigs are available (Of course, they shouldn't expect to receive the same remuneration at those gigs as full members).
If your players are not willing to commit without guaranteed money, you hobble yourself by viewing them as essential to what you do. Re-think the band concept; use the minimum configuration that it takes to put your music across. . .Later on, when things begin to happen and the gigs support a full band, you can always find other mercenaries. Maybe better ones.
Do it yourself. You mentioned Pete Seeger in another post. He did a lot of freebies and had a lot of doors shut in his face before he worked his way up to the stature he now holds. If you're right about your music, maybe you can do the same - eventually.