I found vinyl runs to be very expensive these days, especially with short runs. But they are a valuable resource to give to club dj's to get your music out in the clubs. Vinyl is very quickly becoming a specialist subject, many record shops here in the uk are dying a death, its becoming too expensive to cater for such a decreasing market.
Digital is the NOW of distribution and the future. With some hard work concentrating on the publicity, ie PA's, occasional free handouts(to the right people of course). Starting out with college radio and local news media is the place to start, its also the cheapest. Generating a buzz is the most important thing, sales follow that, people cant buy what they dont know exists. I would recommend that you are really at a stage where an industry contact directory would be money well spent, unless you have done that already?
Generating buzz is the order of the day. Also the more reviews you get in magazines the more "Good" usable reviews you will have in your arsenal. A music lawyers contacts can also be very valuable, but music lawyers arent cheap, they have access to most levels of the industry and as a result can be very helpful. And if the lawyer wants to continue getting your hard earned money then its in his interest for you to be successfull. Id say that the lawyers are probably some of the most connected people in the industry.
A really important thing is also to be confident in your own work, because you have to portray that confidence to inspire the same confidence from others.