Well, wingzero (since I don't feel like typing l33t), you mentioned your attempts to learn Japanese in college. I never liked formal instruction. I took Spanish for 3 years in high school. Not only did my Spanish still suck at the end, I didn't like a minute of it. It just seemed like a chore.
Now that you're studying on your own, it should be a lot easier for you. You can move at your own pace, and focus on what you feel is important and fun.
I think you should be able to approach the kana again. You may have to find your own way of practicing the writing and incorporating it with what you are learning. If you want, I can tell you my method, and you can use that as inspiration, or copy it, if you so desire.
As for practicing the reading of kana, the method that worked for me was to grab a manga in Japanese (preferably one with furigana, I recommend Yotsubato), and just start reading. Don't sweat it if you don't know what they're saying; when I was practicing my kana, I had no clue at all. Just the fact that you're pronouncing each of those characters and associating kana with sound is enough. Hiragana should be your first and foremost priority in reading, and since it's used so much, learning it should take only a short time.
Katakana and kanji are different stories. I personally learned katakana the hard and boring way of reviewing them every morning on my way to school. I'm 99.9% certain there's a better way of learning them quickly. Perhaps some other member here knows.
Put off the kanji for now, until you have attained considerable skill in the kanas and feel you're ready. While important to know, they're not critical at this stage, and learning them now will just burn you out. In the meantime, there are plenty of add-ons for Firefox that will translate kanji and kanji compounds into English.
Probably one of the most important things in learning a language is self-discipline. Find a routine that allows you to learn at a decent pace while not sucking up all the time in your day and stick with it. Every time you slip in your routine, you just open the door for more slipping, until eventually you find yourself devoting no time to the language anymore.
Self-studying is only a chore if you make it so, and the first and foremost thing is to have fun with the language. Go ahead, switch the language in your favorite video game to Japanese for the heck of it. Every little thing you do can be a fun experience and yet teach you the language at the same time.