I, too, live in an area where hills are unavoidable. Didn't realize it until I started running, but I am basically on a ridge. I can't go more than a mile without going down a really big hill that I will have to go back up.
At this point, I would suggest just hitting the hills at the same effort as you are hitting the flats. If you have to walk... walk... Or jog-run (take a few steps jogging... then a few steps walking). Just try to keep your heart rate even.
Gradually, you will be OK running up the whole hill at a slower pace. It may cause a spike in your heart rate, but that's OK.
Eventually, you can look at the hills as good training opportunities. Trying to maintain your pace, or pick it up a bit can be great substitutes for speedwork.
Another important hint: When approaching a hill DO NOT LOOK UP THE HILL. Look at the ground, about 5 feet in front of you. This psychologically flattens the hill a great deal.