FLR M or SET O Urgently

[lionking3010]

Dear moderator,
I got ILR on Nov 2011. My wife has got Tier 1 dependent visa startes from August 2009 until August 2012.We are living together in uk since last 2 and half years. Some how I could not make my wife's application with my ILR.
I applied for ILR using Set m form in Croydoen PEO on March 2012 as she had already completed 2 years with all docs.They refuse the application saying Tier1 dependent can switch directly to ILR. She has to apply for FLR first then ILR.
With rules changes in 9 July 2012, Can she apply for ILR now ? or shall I go for FLR M ?
If FlR m is right choice then
New FLR M section 6 has got so many question which is irrelevant to us as we were staying here since last 2 and half years.
Please help ..

[lionking3010]

I mean "can not switch from tier 1 dependent to ILR" in above post