Hi
If your husband switched from visitor to permit free visa in country then yes, it will count as legal residence. It would also help to get his file from the BIA, which gives details of all the visas, caseworker notes, etc.
Its best if he goes in person to the PEO, so if they have any questions it can be answered there and then.
He can apply for ILR on Aug 2008. 28 days before the actual entry date.
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