Trying to keep job prospect alive...I need advice please.

This has been a really long job interview process but I'm hoping to keep this alive, please let me know if you think this sounds appropriate.

This is the history.

First response to my resume on 4/25 from the company (I was very honest in my cover letter and told them I hadn't worked in 5 years).
2 weeks later phone interview
2 weeks later in person interview with VP, Manager and 3 potential peers
2 weeks later response from HR that I didn't get the job I applied for but they were recommending me for a better suited dept./position that was being created (and they were right that it is better suited, I would have applied for this if it existed)
2 weeks later the position is at a standstill, HR will let me know when it moves forward.

OK - they've had plenty of opportunities to say thanks, but no thanks and they haven't done so, I think they are being honest with me. I also realize that sometimes new positions don't get approved and that I would have to interview with the new Manager etc., so this is not a done deal.

I don't want to keep bugging the HR manager but I also don't want them to forget about me.

So, I started working a temp job about 5 weeks ago. I'm planning to temp throughout the summer rather than look for something permanant.

I was thinking of responding to the HR manager's last email by telling her my intentions (about temping) so she will still see me as a viable candidate.

What do you think?

stupid customer service job. The agency that had sent me to interview kept sending me to do temp work because the damn company kept saying I was the 'best' candidate they had interviewed but they had 'just a few more to go'. This went on forever. Finally I said no more. Send me to interviews for full time work because I didn't want to work for a place that was soooooooo shaky that they couldn't make up their minds.

At the point where I severed my ties with them, they still hadn't hired anyone. Don't know what ever happened. But any company who can't decide what they're doing has problems, not to mention an extreme lack of consideration and respect for the applicant.

already applied at the company and was in this long drawn out process when I got a call about the temp job.

The reason I'm giving them some space is that I know they're hiring, they leased a lot of new space and got a chunk of venture capital in January. There's a lot going on.