So my own suspicion is that the attorney has stopped this prosecution because part of her defence was to question legality and that would have brought his advice into the public domain again and there was something fishy about the way in which he said war was legal.

Al-Manar is described by the US government as terrorist entity in 2006.  
Short Clare (speech 2001) Making Globalisation Work for the Poor: A Role for the United Nations Department for International Development ISBN 1-86192-335-X
Short Clare (1999). Turnbull wrote that Clare Short had made claims "which damage the interests of the United Kingdom" and that he was "extremely disappointed".

She stood down as a Member of Parliament at the 2010 general election. She was the Member of Parliament for Birmingham Ladywood from 1983 to 2010; for most of this period Clare Short was a Labour Party MP but Clare Short resigned the party whip in 2006 and served the remainder of her term as an Independent.