If your temporary one is similar to the one I get on my birthday (long ago the government decided that I should get a medical every year, and that they'd like to yank my Photo ID license for 2-3 weeks while the new one shows up) then you might have trouble, but because you have a state ID you'll have no trouble renting a car. In theory, it's exactly the same as a regular ID (only it's a slip of paper saying I'm Mr. CKA1 with no photo and nothing I couldn't run off a Xerox machine) in that if you're pulled over you hand them the slip and they aren't supposed to give you a hard time. According to the DMV, it's a slip of paper which is suppose to be treated like an ID.

I will say, in theory it works fine. But in reality (like getting into bars) it's more complicated. Phone ahead, explain your situation and see what they can do. Remember, there are a half dozen mainline car rental joints, so you don't have to put up with any guff if some teenage kid decides to give you some lip. It's your right to shop around. Plus if you phone ahead, you can get the managers name. Drop his name when you show up, they'll see you're legit.