We finally got some good news (though, of course, it was bad news, but it gave us good news in the end). The State Department emailed us to say they had gloriously and fabulously lost our paperwork. Bad that they lost it, but good we finally heard from them! We rushed to fax the paperwork (it all having been saved on my computer) and within a week it was processed. The State Department gave Grace a Favorable Recommendation to have her two-year ban lifted. Now, on to USCIS, where they will make the final determination. With luck, this will not languish on and we will finally be able to move on with our lives.
In the meantime, we have been excitedly planning our exchange of vows in Kenya, scheduled for next month. Being out of the country for so long has me worried a bit about income and making ends meet, but I am hopeful that my various undertakings (writing, teaching, performing) will come through and we will be able to survive. If Grace can get her waiver, we will be on a fast track to both of us working again. She will undoubtedly work much more steadily than I, given her field (finance) and depth of education.
Anyway, I'll be sure to post again when we hear from the government next.