I stay in the right tire path most of the time, but not so close to the edge that I am riding in the debris line that collects on the side of the road. According to NC state law, cyclists are supposed to ride as far to the right as reasonably possible. That is the law, and I assume that a cyclist could be ticketed for blocking an entire lane -- plus, I think it needlessly ticks off motorists and slows traffic. I will take more of the lane when prudent for safety reasons, such as passing parked cars (where someone might door me) or riding through intersections (so someone won't right-hook me).
Much of the reason for taking the lane is to increase visibility. This can be accomplished better by other means -- wearing bright jerseys, using bright tail-lights all the time.