Although it may seem counter-intuitive, it is usually not a good idea to ride your bike on the extreme right-hand side of the street. I think people do it for two main reasons. First, they may be feeling timid, and proximity to the curb provides a degree of comfort. Second, they may not want to impede the flow of traffic.
To begin with, let me just say that some streets are less well suited to sharing the road than others.
If a street has solid lanes of cars, with no shoulder, or buffer zone of any kind, you might want to choose a different street. Just because other cyclists use it, doesn't mean you have to. For example, to my mind, North Avenue, especially east of Ashland, is to be avoided at all costs. After all, Cortland and Armitage are nearby, and ever so much nicer.
If the street you've chosen has a bike lane, ride in the middle of it. If not, ride no less than a couple of feet to the left of any parked cars, and follow a straight line. Far from impeding the flow of traffic, this strategy will protect you in a number of ways.
First, it keeps you visible. Drivers will notice and respect you as a fellow road user.
Second, it makes you predictable. Weaving in and out from behind parked cars makes it confusing for others to interpret your intentions.
Third, it helps you move at a consistent pace, because you are not merging in and out.
Fourth, it keeps you from getting "doored", should anyone suddenly emerge from a parked vehicle in front of you.
Fifth, it gives you more options for avoiding potholes and other obstacles.
Sixth, it ensures a less bumpy ride. The edges of the roads tend to be pothole-ridden and poorly patched.
Finally, "sharing the road" does not mean scurrying along the edges. Bikes belong on the roads. Get out there, and stake your claim.

How precient your post is - see this, posted 5 weeks after your post:
http://www.suntimes.com/news/transportation/998873,CST-NWS-bike11.article?plckCurrentPage=0&sid=sitelife.suntimes.com
"If a street has solid lanes of cars, with no shoulder, or buffer zone of any kind, you might want to choose a different street. Just because other cyclists use it, doesn't mean you have to. For example, to my mind, North Avenue, especially east of Ashland, is to be avoided at all costs."
Unfortunately, Lasalle at Oak St and all the way to North Ave is precisely such a street. Wells St 1 block west has an adequate bike lane buffer zone.
Deaths and accidents are a fact of life and can happen on any street, but the best practices will keep you safer amidst other people's carelessness and unremorseful negligence.
I sympathize with the family, and grieve with them. He was an alumnus of my high school my condolensces to his friends and coworkers.
Posted by: Dean | June 18, 2008 at 10:16 PM
Actually, that post if from May of last year! But the same holds true regardless of the time frame. Everyone has a different comfort level. Ride where you feel safe.
Thanks.
Posted by: Justyna | June 19, 2008 at 11:42 AM