We already plan on going to the local office and getting information/application. I don't want the military involved because they probably won't know much plus, every time I deal with them, my family and I get screwed. Trust me, if you knew my situation, you'd do the same.
I don't have a bachelor's but I do have an AA plus a wide variety of experience working jobs other than my military one. As a matter of fact, I used to teach English at a school here in Japan. I also speak sukoshi nihongo so that helps. Basically, I'll probably try teaching English first and then see what else is available.
I already knew about the overstay of the visa since I looked that up on some website. I don't think I'll have any problems getting it since my family are all Japanese citizens, my wife and her family will provide letters of support (I guess the ones that say they'll be responsible for me while I'm here?), and I've lived in Japan off and on for quite a few years.
My kids actually speak and understand fair Japanese and I'm sure will pick up more quickly when exposed to it daily. If we make the final decision (as a family) to stay here, we'll definitely check out the local schools and see which ones will provide the most support. I've also had a local youth (friend of my kids) check on some schools and he's recommended a school or two.
Thanks for taking the time to answer my questions. I really appreciate any help/advice I can get from everyone out there.