When employers extend a deadline

[UrbScotty]

Scene: Two nonprofit organizations, late summer 2011 into winter 2012.

Organization #1: Progressive advocacy organization

Mid- to late August: I learned of an excellent opportunity for which I think I'd be a good fit.
A couple days later: A friend of mine who works there spoke with me to discuss the job, the organization, etc., and pledged to work behind-the-scenes to get me an interview. This individual is well-known as one of the leading young progressive activists in the state, and when he promised to try to get an interview, I believe he meant it (unlike with many people). He also noted that the funding for the position is there, and in his words, "there is a lot of work to be done."
August 31: I applied.
September 7: Deadline.
Ensuing weeks: I made a small number of contacts - a couple with the organization itself, one with the aforementioned connection.
Mid-October: I checked, and the posting was still up on the website. Now says, "Deadline extended to November 1 or until ideal candidate is identified."
January 2, 2012: Position still posted on website. It still says "Deadline extended to November 1 or until ideal candidate is identified." It has been 124 days since I applied, 117 days since the original deadline, 62 days since the second deadline. Not that I'm counting. Again, as I was told a few months ago, the funding is there, and "there is a lot of work to be done."

Organization #2: Nonprofit advocacy organization. I have interned with another organization that has similar goals as this group, and I have done similar work to what I would be doing here.

Mid-November: I learned from another friend, a local staff member for this organization, about a great opportunity with this organization.
November 18: "Priority deadline;" applications submitted by that day were to be given given priority. I happened to apply that day.
November 21: Another friend of mine - a board member with this organization who knows the hiring manager - said she would recommend me for this position.
November 23: Original "hard deadline."
November 30: I contacted them to follow up, but did not receive an answer.
December 19: I received an email saying that applications were being reviewed and I would hear back soon.
December 20: A posting for the exact same position was posted on a nonprofit job board that I frequently check (but the position did not appear until 12/20; again, I had heard about it from a friend the previous month).
December 23: New "priority deadline." This time, however, there is no second deadline; they just say they will accept applications until the position is filled.
January 2, 2012: Nothing yet. 45 days since I applied.

Questions:

1. What could be going on (i.e. why are they extending these deadlines)?
2. What the hell am I doing wrong? (Okay, that's probably not something you all could answer - but I keep thinking that there's something in what I am doing that needs to change.)
3. Any tips for following up with them at this point?