Even though it is troublesome, you should stay with this job until you are able to secure another position. If you feel that this company is a dead end and that there would be no opportunity to transfer within, then you could start to apply elsewhere.
It would be a good idea to invest at least a year with your present company. If you could start the application process without jeopardizing your present position, there would be no harm in doing this.
Remember that because of the economy, jobs are more difficult to obtain than they used to be. This may take some time.
Best wishes,
