I would probably ride a fairly normal position about 1-1.5 ft left of the line. I never really take the lane, so I wouldn't personally consider it here, and riding the line often causes problems for me.
What I have been known to do is move right (out of the imaginary lane) going through an intersection to allow cars to pass me. I only do this under specific circumstances though, and only if merging back into the lane on the other side isn't going to be a problem. In places where I know merging back is an issue, I ride my standard position and cars just have to deal.