Registration of child on form MN1 - help needed and advice.

[tishthedish]

Good Day all.

I am looking for some advice from those who might have first hand experience please. No judgements please.
I am a South African national and am married to my British husband for 14 years now. We came here in November 2000 to visit his parents who were ill. My husband decided to remain here and we sold up and as he was already British by descent he applied for his British passport and I sent off documents for limited leave to remain. I was pregnant at the time and in my safe zone then in 2001 I gave birth to our daughter. In 2004 our lives took a real nosedive and along with the passing of his father we were in no way financially able to afford my fees for application of indefinite leave to remain. I have now been here since then as an overstayer and was hanging on for the 14 year rule when I was going to apply under this rule. Which now no longer exists. The query I have is with my son who is 17 now and was on my visa at the time. He is an overstayer as well and I am applying to register him as a British Citizen on form MN1. First query I have is that my partner and I were not married when he was born although he was given his fathers name and his father is on his birth certificate. He was born in 1997 and we married in 1999. So he was legitimated at a later date. My husband is British by descent with a father who was born in Bury in Lancashire. So after reading the guidance notes I have established that I need to register my son under rule 3(1). My husband had never resided in UK before my son was born so the other rules don't apply. Is this correct? Also how does is affect the application if my son's immigration status is "Overstayer"? Does this impact his chances of acceptance? I have tried to find information in this regard but there just is none at all.
Also, I started filling out the documents a couple of weeks ago but have looked online and there are now updated June 2014 guide forms and MN1 application forms so do I need to print the new forms off and start again?
I look forward to and appreciate all help, thank you.

[Jambo]

Was the child born in the UK and lived his first 10 years in the country? Might be better to apply under section 1(4) using form T.

[tishthedish]

No, he was born in South Africa and has been here since November 2000.