1) Sorry for giving you the impression that I know your situation better than you do, but I have never seen a department where there is only a single prof with available funding. Academia just doesn't work like that.
How many profs in the dept? With how many have you spoken? Have you talked to profs in other departments? For example, sometimes a desperate physics prof will hire an EE grads student to do research.
Also, are you able to make up the lack of funding by TA'ing?
2) 20 hrs a week outside of class? Is this a coursework-only masters program?
Most of the time, the profs share a common interest in being able to milk their grad students for time in the lab and collaborate to keep the hours down. Of course, this goes out the window if you are talking about a coursework-only masters where the most of the students are paying tuition rather than on a research assistanceship.
3) Like I said-- most college grads take 3-4 years to "get" what is expected of them in research.
It is of course possible that you are god's gift to academia and that you have wisdom and insight that have escaped others in your position for several years.
However, in my opinion, it is more probable that you have a vague understanding of the requirements without knowing how to implement them.
4) Are the 6 hrs of meetings/week driven by the funding agency/company or the prof?