Whether you're a hiring manager or a candidate, read Staying Networked. (Sorry, link no longer exists.) If you're a hiring manager, you'll want to network to find people, otherwise you'll be overwhelmed with not-necessarily-appropriate resumes. If you're a candidate with more than a few years of experience, networking is your best way to find a new job.
Of course, you'll run into the same problems I'm running into now. I'm trying to keep my database updated with everyone's contact information, and when I call people, they're concerned about my term “database.” I guess I'll have to call it my contact management system. Maybe then they won't run screaming in the opposite direction 🙂
Persevere with your network and you will find a job.