There are dozens of post that fee at Solihull/Glasgow/Belfast is taken only after making a favorable decision. Latest such post of today is of Solihull at
http://www.immigrationboards.com/viewto ... 651#527651
In an un-favorable situation there are two possibilities:
1- Documents are returned as such and neither any decision of refusal is formally made nor any fee is taken. Technically application is considered as withdrawn by giving option to applicant, otherwise;
2. Documents are retained as same day decision can not be made and applicant is asked to pay - Refusal letter is received later on.
Hence where applicant is uncertain for ILR and is considering FLR than it is better to take chance at any of above 3 PEO and in case ILR is not given than to apply for FLR without incurring fee of ILR. This is not possible at other PEO