Pitts,
I retired (USAF) current in 2003 and got hired by Comair and flew the line there until I got my present dream job in 2006. Many people went straight from the military or -121 to my current employer though. If you are not getting interviews now I would recommend doing the regional thing. It has its downsides in pay and lifestyle but also remember that training is totally different in the airlines. Come prepared to each sim and you will do fine though.
Flying 8-900 hrs a year is great for currency but it is easy to become an autopilot cripple. Hand fly as much as legal and your Capt is comfortable with. You will then be able to ace the sim part of an interview.
As much as we learn in the military be ready to learn some more. Things like taking a plane full of passengers into a non tower ops airfield and long visual approaches are routine.
It will be difficult at times for many reasons but you will learn the industry and it will be extremely helpful when you do get on somewhere.