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Are we CURRENTLY "of the flesh" and "sold under sin" OR are we "set free" and "in the Spirit"?

One of the greatest theological questions that has ever faced the church (or should I say "the church since the 5th century"?) is, "What did the Apostle Paul mean when he penned Romans 7?"  Was Paul talking about his present struggle with sin in the passage or was he referring to either his life before Christ or the life of someone else outside of Christ? For many years of my Christian life, I sided with St. Augustine (who actually changed his position) and the Protestant Reformers that Paul was talking about his current life struggle with sin.  And due to that "tradition", many Christian leaders today continue to teach that the Apostle Paul was simply being honest in his ongoing battle with sin. It seems so humble of him and teachers will argue provides a great example for us.  HOWEVER, was that the way Paul intended his chapter to be interpreted? The ENTIRE EARLY CHURCH for over 300 years with a single, uniform voice (whenever they addressed this passage...