Any tips for where to look? Who to talk to?
If you don't want Chicago (My first choice for midwestern livable/startupable city).
You might consider Indianapolis - its fairly diverse considering how close to KY it is. But there are a fairly large number of software firms for the size.
Probably your best bet is to do some searching for mailing lists for technology groups in your area. If your interested in iphone stuff, look for x-coder hacking group in the region. Get to know the people and you will find a partner to found something with or you will hear about the job openings that no one is announcing because they are to small.
even if there were some random startup, you still wouldn't be able to participate in the startup community you would in the bay, or boston, or chicago, or ny. there'd be no networking, no idea sharing across company lines, no post-work barcamps. part of the fun of a startup is the culture.
good luck. as for me, i'm hoping YC comes through for us so i can move to the bay.