Do not try to answer the questions the way the recruiter would like to have them answered but rather answer them based on what you bring to the organization. It is better for you to find an organization that appreciates what you have to offer rather than providing canned answers to questions. Frankly, it becomes a screening tool for not only recruiters but you as well. Graduate school or other certifications are also excellent ways to demonstrate your ability. Also, don't forget about networking with other HR professionals.
Many people find new opportunities through people they have met in the past.
Joe - at this point in the game many areas are starving for people to fill jobs. For me to say one area is hotter for jobs then the other is difficult. Clearly the northeast remains a viable and attractive area for employment, especially the Metro DC area and many areas in North Carolina. I ask you to determine the area you are attracted to and focus your job search there. The one area that will remain hot is recruiting.