I don't know that I'd hold "overqualification" against someone right now. When you've been out of work for month after month, you'll apply for ANY job that will offer a steady paycheck.
Well it happened to me Katie. I guess any company has to hire the right person for the job, someone who is going to remain, grow and develop, not someone who will leave in 12 months time for a better opportunity.
I was still faced at interview with, "why are you applying for this post?" It was hard not to say, "because I was made redundant". That very rarely works these days. What if 10 people you interview are all unemployed? You still have to choose the right candidate for the job.
Of course I applied for ANY job, but I wasn't always offered them or shorlisted for interview.