I just had a vaginal birth after 2 c-sections. I didn't dilate properly on my first one either.
Contrary to what a lot of doctors want to make you think....it is actually safer to delivery vaginally even after a c-section, provided you had the right stitching....that would be the low cut from hip to hip. If it was just because you wouldn't dilate, I would really advise you to ask your doctor to consider letting you go on a trial of labor, without pitocin on course. [Pitocin increases your chances of rupture (c-section or no.)] There are many many more risks to a c-section than there are to delivering vaginally, and if you want more information, please feel free to contact me. In some states, it is illegal to have a vbac because of insurance and malpractice, but if you want to have a vaginal birth, it is really up to you and not your doctor. If he won't do it, there are some who will. Believe me, it is worth the recovery time to get what you want, especially when you already have a little one to care for.
I was able to put off a lot of bed rest by getting mechanical (activator) adjustments from a chiropractor. It is more gentle than the regular "moving" and popping that so many of them are notorious for. You should try that.