On the 'resign' thing: if you resign you will not qualify for unemployment insurance.
If they ask for your resignation, tell them to fire you.
Companies and bean counters love it when someone resigns .. that releases them from any and all obligations.
If any HR interview type asks, be entirely up front about what happened.
There are better jobs all around, it just takes awhile to find a good one.
Craigs list, Inet, word of mouth, networking with friends ..its all good.
..and yes.. if a manager/supervisor said they couldnt back me up, I'd be lookin for another job *that* day.
'Oh by the way, I am takin the afternoon off to explore my options, later' .. works well.
-GE aka Frank