It is still possible to Teach in Thailand without a Degree ! As of February 2009 there is still a demand for Native Speakers, with or without paperwork.
I have been teaching in a Private School here in Phuket for the past few months, and I have a contract for the new year starting in May; but all I have is TEFL Certificate and some inate ability to communicate. WIthin reason anybody who wants to Teach here can probably find work provided they stick to Private Schools and work through an Agency.
Personally I work around 20 hours each week, and receive 30,000 Thai Baht each month. I can have a work permit, and help with a suitable annual Visa, but I do not need the Visa since I am married to a Thai and get one that way instead. I also Teach various students at the weekend, and during holidays, bringing in another 15,000 Baht.
Incidentally in the UK the Thai Honorary Consul, located in Hull, can issue a one year Visa [made up of 90 day chunks, effectively making it possible to stay for 15 months], for about 80 pounds [last time I looked it up]. Alternatively it is possible to simply get a 30 day Visa on Arrival then obtain an Education Visa, not as a Teacher but as a Student.
Please note that I am NOT suggesting that sneakily defeating the rules is the best solution, nor is it likely to stay as easy as it is at present. Things are certainly changing here, and plenty of good people are being driven out because they are not able to adapt. YES the rules are constantly changing, at least on paper. It is NOT eacy to get work in any State School, though it is still possible if they are unable to fill a vacancy. [I have been offered such a post in a Town that has nothing to attract foreigners.]
Obviously State schools receive most of their funding from the State, and it is for that reason that they are obliged to have applicants Vetted by the 'Jobsworth pen pushers' in Bangkok. The school administrators on the other hand are perfectly happy to employ anybody who can get the job done. In my case I have even been offered a Tax Free 'Top Up' if I will take the post, which will be funded from the School Slush Fund.
Please understand that Thailand is not Europe, the people are very pragmatic and rules are only relevant if they are unavoidable. [Which is important to remember when crossing the road or waiting at traffic lights!] On the other hand bureacracy here can easily be stifling and oppressive, like the climate
I have personally seen places 'shut down' [for a while] until the right 'Tea Money' [bribe] is paid to 'Education Inspectors'. WIthout wishing to offend the Thais [and risk going to Jail for 'insulting' Thailand] this place operates very much like a Banana Republic in some respects. Just about everything is 'negotiable' one way or another.
CONCLUSION - Please feel free to make contact via this website if I may be of any assistance. I make no promises, but can/will explain what is still possible here. No offence to the other contributors incidentally, but they are taking things a little too literally in my opinion.