Hey, I live in Pittsburgh. There are a couple of us here on news.yc. The startup atmosphere is not very much. The investors consist of an angel group, Innovation Works, and private angels (which I just hear about, I've never actually seen one). If you manage to raise money, or can self finance, there are good programmers available at much lower rates than in SF.
Innovation Works is running an incubator this summer. The application is due today, if you want to get one in quickly.