Andy
Stick with it if you able.
Keep going the extra mile for people, they will like you and call you back again. Nearly every customer I have done work for calls me back again.
Every week now I get 4 or 5 calls from customers I have worked for before and this provides me with a fairly regular workload. I found that once I had around 300-350 customers in my database, this was generating enough regular work for me to survive, even without any new customers.
Be encouraged. Every new customer you get onboard will bring you closer to your goal. Also you will know that most customers will recommend you if they are pleased. This is my absolute favourite kind of call "Mr/Mrs. Smith said I should give you a call...you fixed thier PC last month..".
Im now in my third year of working for myself and its just about starting to pay me a living wage. Many experienced business owners have told me that it takes 5 years to get a business fully off the ground.
On the pricing issue, I would just ring all of the other folks who operate in your area, get thier prices, and maybe place yourself in this bracket somewhere.
One pracitcal point: you mention targeting some local villages with advertising. Perhaps you could expand your potential target area by offering remote assistance type services. This is something I decided to do myself a few months ago. Its hasnt made me a millionare yet, but I'm getting a few nice remote jobs in and people are reacting well to this new service (I dont relly want to be a millionare anyway)

Prune