Kerry has certainly shown himself to be vacillating and indecisive in this process. Edwards vs. Gephardt vs. Vilsack is a pretty "ho hum" decision. (My guess is that Hillary doesn't really want the job and would rather run in 2008.) Also, Kerry's interest in McCain as VP should never have become public knowledge.
Hitlery won't run against her party's sitting president in 2008. She will have to wait until 2012.
That is precisely why she'll direct EFnK to pick her for VP. Then she'll be set to invade the presidency when EFnK self-destructs from personal or health reasons.
If Vegas would give me the bet, I'd place it.