Thanks for the advice rhyme. I guess it does come down to whether or not I want to take the risk of not getting an interview for another position. I'm just worried that I might hate that one year of work and feel like I took a step back career-wise...I suppose this may be an opportunity to take a risk and see if I can get my dream job by the end of next year!
Is this really a step back, or is it just not your 100% dream gig? It sounds as if it's still a good job, it just lacks certain aspects you would otherwise want.
One way to approach it might be to say that you are excited about the opportunity but recently discovered position X and was wondering if you could interview for that as well. It's all in the delivery really, but don't be surprised if they aren't thrilled with that approach.