Job Hunting

Ug, why is my job so lame. There are many perks to having this job, but the negative seems to be tipping the scale and out weighting the positive. I just don't know what to do, I'm torn between switching positions in the company or leaving entirely for a new job (granted I find one first).
The main problem, my boss. I was pulled aside by him last week. He sat me down in his office and reads my job description to me and than turns to me and says, "Ya, that's not you." Huh -- now how would you react to something like this? Well, I just cried. Yes, full on cried in my bosses' office. Yikes! Granted there were a lot of other things on my mind and the morning was already rough so I don't think I would have cried normally but that was just the last straw.
So after that little incident, I had the weekend to think about things and I decided I was going to talk to his boss and talk with him about a few things. I tell him what happened and how I feel and he says, "Well we are both surprised you have kept this job this long. You are smarter than this job." Huh -- now how should I react to something like this? Well I didn't cry this time but now I just feel stupid.
SOOOO many conflicting thoughts going through my head. In any case, I'm torn between what to do now and I meet with my boss tomorrow to tell him what I decided to do...wish me luck!