job at risk - now what?

I'm not sure where else to post this and I've exhausted all my real life confidants so I'm hoping some of you smart women can help clear my head on this problem.

I've been with my company, an international corporation with 100K+ employees, for 5 years. Thus far I've earned four 4 very good performance reviews and one outstanding performance review. Never have I been approached with anything that I'm doing "wrong".  I earn what I believe is an exceptionally high salary for someone in my field with my level of education.   So while I'm pretty intent on making things work with my job, some recent organizational changes have left me really strugglng.

I am on my third manager and my current manager is new to management, lacks experience, lacks confidence and doesn't provide strong leadership nor strong direction. He is very condescending, gives me instructions that are obvious rather than providing direction that helps me advance to the next step of a project.  He is also very polical and plays that game extremely well which is how he got his current position.  I have yet to see him demonstrate that he knows his a$$ from his elbow though I try hard not to underestimate him because I know that wouldn't end favorably for either of us.

His and my personalities conflict.  People who talk down to me are my biggest pet peeve.  And men like him who require ego stroking are my second biggest pet peeve - I'm not very good at it.  SO he gets defensive then he goes on the offense.  And I try to stay calm and rationally explain my perspective but in the end I leave our conversations feeling demoralized.

So I find myself if a new organization with no allies other than a couple peers who are as new as I am, so they don't have a strong network either.  I can't seem to find the right fit for my skills and my manager isn't doing much to support me either.  I've spoken to his manager but that has yet to pay off; in fact it backfired because my manager said I "went behind his back" to talk to his manager about my career advancement.  In my company culture that is very much allowed.

My options?

1. Wait it out so see if I gel better over time.
2. Try to find a new job within my company but I'm really doubting my capabilities right now - which is my biggest problem overall
3. look for a new job outside my company which will probably mean a significant pay cut

I'm just in a  very dark place and I have lost all self confidence and can't see clearly.  I think #2 is my best option, but again, I don't believe in myself that I'll be successful. 

Any suggestions on how to pull myself out of this rut?