Why not try to get booked at some folk clubs? That's what I did this fall in Scotland. There is a lot of info/contacts available on the Internet and some Mudcatters might be able to help you. I called the organizers of different clubs and sent out a demo and ended up with several bookings. It was great! You might not make enough money to cover your expenses, but it sure will help. Most places provided accomodations for the night, if needed, and paid sometimes a set fee and sometimes a percentage of the door.

But you would have to start that process right away since they book several months ahead. I think that might be easier than trying to break into festivals.

By the way I can assure everyone that American musicians and music lovers are very, very upset at the hassles the government is putting visiting foreign musicians through supposedly in the interests of national security. I sure don't see how people like Andy Irvine could be terrorist threats. Please, UK musicians, don't hold that against us!