Am I better off in a power conference (for recruiting and $$), even if its a step back?

Ron, the way it looks, with many coaches dropping back to D2, the power conferences may be the only ones left in D1 with human coaches.

It's certainly a bit easier to recruit from  a power conference, given the extra money, better prestige, etc., but if you're happy where you're at, there's nothing wrong with staying at a smaller school.  Probably a bit more challenging, sure, but when you succeed it makes it all the sweeter.  And in all honesty, sometimes trying to recruit at a bottom feeder BCS school is actually harder than recruiting at a smaller school (for instance, the big boys always seem to want to take all the good players.  Can't imagine why really.  But, you kind of get into a bit of a rut trying to compete against teams full of studs when you're bringing in role-type players, if that makes sense.  It'll definitely make you have to learn how to coach though)!

Guess it really comes down to what your goals are.

To win a National Championship, I guess a power conference team is the best way to go then?

Very difficult nowadays to win a NC except at a power conference, although dcy is right about it being hard to recruit at lower BCS schools..If possible get yourself to an A- or higher baseline prestige BCS school. That said some of the most respected coaches are guys who can win at midmajors.