Brewer, sorry to hear about your problems. I spent 5 of the last 7 years in my job in a really bad situation, all caused by (mis)management. I was losing my mind, because I loved the job, and really wanted to do it right. But that was in complete contrast to what the boss wanted, which was to build a political empire by not doing anything (thereby not making mistakes) and by backstabbing his peers.
I was truly miserable, and spent a lot of time at home pissing and moaning to DW. She's a saint, by the way.
She finally convinced me that I was in a no win situation, and that there was nothing I could do to make it better. So the best thing I could do was to RIP (Retire In Place). It was hard, and completely against my personality, but over the period of two years I did it. I quit caring, quit being involved with decision making, did the absolute minimum I had to to keep from getting fired, and somehow still kept getting excellent performance reviews.
In the long run there was a happy ending. First, I found a different job in the same company. It wasn't a job I loved, but as I discovered, a good boss and a bad/mediocre job is far better than a great job and a lousy boss. I spent my last two years much happier. Especially when a year after I had moved on the boss, his boss, and their pet flunky/snitch all got canned for misappropriation of funds, falsifying expense reports, and sexual harassment. Sweeet!
It really wasn't as bad as it sounds, but they were definitely accepting improper gifts from vendors, and the harassment I believe had to do with getting drunk on vendor money and making improper jokes to female subordinates. I think by then upper management had (FINALLY!) caught on a little, and were looking for ways to get rid of them. And they didn't even do the standard "kick them upstairs" method.
I guess my point is keep your head down, look out for yourself, protect your paycheck, and see what happens. Obviously, if you get a chance to move yourself beyond the crappy situation, take it. But I think you'll be amazed how much pressure RIPing will relieve. Good luck, dude.