The curse of the JD

Going into law school, I bought into the conventional wisdom that you can pretty much take a JD anywhere outside of the law. Now, nearly a week into my non-law job search, I can honestly say that having a law degree is a very mixed bag, and in many ways more of a curse than a blessing.
The short version is that I've been warned repeatedly that although many employers will look favorably at my JD, most will be wary of hiring me (or any other newly minted JD) as I am both over and under qualified for pretty much every non-law job out there.

I'm under qualified because I've spent the last three years in law school and thus do not have the only thing that seems to count at this stage in the game, actual experience. This puts me at an obvious disadvantage as most of my peers, who did not go to grad school, have 3+ years of actual work experience. Although I have considerable experience working in a variety of legal and political/public policy settings, I do not have any experience working in the business world, and am thus at a serious competitive disadvantage.

I'm also over qualified because I have an advanced degree, so that many employers will typecast me as either an arrogant blowhard/know-it-all or as someone who is looking for the type of compensation that reflects my JD but not my actual experience. Thus, many employers may view me as potentially being an expensive headache before bothering to conduct an interview.

In light of this problem, I think there is really only one approach I can take. I'm only going to apply for entry-level jobs and then stress my willingness/desire to start at the bottom and work my way up. I don't mind doing this as long as I believe that a given job has the potential for rapid advancement and compensation. Hopefully this approach will work.