I run a satellite realm for Dun Abhon in Corydon. I live in a small (<2000) people town that is economically depressed and full of people... well, not much different than described.
Here's what I did... I cal it Wal-Mart marketing. I found the closest town with a Wal-Mart. I found a decent sized park with a lot of traffic, and got Mansquatch and his sister, The Clobberer (aka my wife), to start playing with me in the park on a specific day each week (Saturdays * 2:00 for us).
This may sound counter-productive to take the practice field away from your locale, but although people would have to travel to get there, it is a place people are already used to traveling. We have a greater chance of people in Corydon going to Corydon, and people from the other areas going to Corydon as well (because they are used to going there for Wal-Mart). If you don't have a Wal-Mart, pick something similar that many people already travel to go to on a regular basis.
The first week we had someone stop who "had to try this out". They were already familiar with the SCA, but this seemed to appeal to both the guy and his girlfriend, who liked the swordplay without the big hard stuff and bruising.
With only a little encouragement, the next week, they were back out and bringing more with them.
We still have yet to have a large group (about 7 or eight consistent), but we are rapidly building as this is our fourth week.
We have yet to put a flyer out, though I have them made up thanks to someone else who made templates here on the board:
*Warning* image heavy:
http://www.belegarth.com/board/viewtopic.php?t=22135
http://www.belegarth.com/board/viewtopic.php?t=22078
Hope it helps,
RB