Indyneer,
As usual, RDK gave some solid advice. And, as usual, I would like to add my $0.02.
I agree that managing projects is managing people. If you are managing engineering projects that other people are taking leadership of, then, by default, you are managing those people. The people that think they can manage projects without managing people are the ones that make the worst managers. On the flip side, if you are the only one working on an engineering project (or the one with leadership over it), then, by default, you are doing technical work. The kicker is, even if you are doing technical work, you will probably still have to "manage" the people you work with to some degree, even if your title doesn't have "manager" in it. But enough about that.
I would like to address a few of your assertions at the beginning of your question. You mentioned that many of the engineers you have talked with complain of a lack of upward mobility and job security. Part of this may have to do with the particular situation they are in. I work for a company that offers two distinct career options: one is the technical path and one is the managerial path. There is a "corporate ladder" in both cases, and you won't necessarily get hurt monetarily if you take the technical path (some technical people here make more than their managers). Of course, if you start moving up to very high positions in management (which are few and far between) the monetary gap begins to widen. This "dual path" is becoming more and more popular as companies begin to realize that to keep good people doing technical work, there has to be an incentive. I would focus on companies that offer a dual path.
Second, getting an MBA and becoming a manager DOES NOT guarantee job security. In fact, it can do quite the opposite. The current trend among companies that do technical work, including engineering, is focused on "lean management." Believe me, there are plenty of people in middle management at many of the large technical coorporations that are pretty nervous right now.
Lastly, I'd like to make a few observations. Please don't misconstrue these as personal attacks. As I look at your list of options, a couple of things stand out to me. I find it interesting that you mentioned a "general" MBA or a "generic" MS. To me, this implies that you don't know what you want to do, or that you are very afraid of any specialization (your "Engineering Technology" degree also supports this). To be of value to your company (and therefore to secure upward mobility and job security), it should be clear exactly what you contribute to that company. The more general and generic your background is, the harder it is to be in a position where your contribution is significant and well understood. Of course, you do have to avoid over-specialization, as this is a common way to get "in a rut." The trick is to find something in-between.
To me, it sounds like you want to go to grad school to add a suffix or two to your name, and to hope job security and advancement come along with those suffixes. The truth is, you go to grad school because of a genuine interest in a particular area or a particular kind of work, and because that degree will enable you to pursue future work in that particular area. The degree itself, however, does not "entitle" you to anything.
If you would like to do technical work for the next 10 or so years, I would suggest working towards an MS in a particular field. You may want to work for a while before you decide what that field is (after working for a while, you may even decide that you don't want/need the MS to do the technical work you are interested in). If you're intent on being a manager, demonstrate to you bosses that you are capable of such a job, and pursue on-the-job training and formal training that your company might offer. If you think it's necessary, pursue an MBA, but I would wait a few years. Most good MBA schools require a few years of professional experience before admittance anyway.
In short, make your decision a dynamic and feedback-oriented decision. To be frank, your attitude at this point stikes me as a little immature. It might be in your best interest to get some more experience.
Good luck!
Haf