I have to say that having an LPN is excellent leverage when it comes to experience. I don't know how many countless times I've heard people ask how they are to get jobs when all of them require some form of experience. In the long run, having as much education behind you as you can is pretty smart, LPN or not.
I have quite a bit of respect for those who have worked their way up from CNA to RN, not to disparage those who haven't WHATSOEVER, by the way. Considering I have no education at all.
But it seems to me that going through the year of school is part of character building, gives you one more strength to fall back on on your way to RN, and the stability of having a nursing education with the way our economy is right now, helps exponentially while you're in school to get your RN.
We have very limited options much like you do where you live Tony. My family is from outside of Asheville, N.C. which isn't terribly far from you. I live in rural Pa, and had I not chosen to do LPN first, I would be stuck with only one program, 50 miles away, with a 4 year ADN (part-time) that may or may not have 15 slots open that take years to get accepted into.
Or an adult learner BSN that would take me an extra 2 years to complete because of the adult learner status.
As a result of me choosing to do a 1 year LPN, I can now go to the same college that offers adult learning, for 2 years, no wait, for LPN to RN.
Your situation is pretty unique in that you have VA benefits to use at your discretion. It seems elementary that you would go back and get a BSN since you already have a degree now. I believe though, that you may very well have to take some classes over again.
Whatever you do, it's great that you have the VA helping you out. If you served after 9/11, I know my brother was really excited about a bill that just passed that will give veterans a ton of extra education benefits if they served at least 36 months after 9/11.
Not sure if it's in addition to GI Bill or in lieu of though.
Good luck!