There is definitely regional play. If you want graphical evidence of this, go to a program in the Carolinas or the Bible belt, look at their current residents, and map it out using pins and a printed map. It will look like .. a Chuck Norris kicking bag, or something like that. Some schools do this on wall-size maps for their residency match, and the results are similar.
It's too early to assume you're shut out, so hang in there. There is geographical bias (primarily, in my opinion, based on precedent; ie New Yorkers that go to Missouri and tell them they want to come, and never do as evidenced by the rank mismatch), but the exceptions are numerous.
