To be honest. Make your resume like you would any other time. Send it in and check up from time to time to see if there are any updates. Get your interview and go in being as honest and as upfront as you are here. What you are saying is reasonable and they more than likely will see it as this.
Remember that you do have a slight mark against you currently. This doesn't mean your future is over it just means you might have to go that extra step. Considering your situation I wouldn't considering going here too uncalled for.
http://www.pilotcareercentre.com/CareerHelpResumes.htm
You need to get back into the saddle. The hardest part will be this first job. Once there you can build some time/experience/credibility for your next endeavor. I know a CFI doesn't make much but do what you can to get the ball rolling then build momentum.
Duck