Thanks to wpilr_nov12, uksettlement and especially cs95tdg for all help they provided by answering my silly questions on this forum. Your patience and tact are really appreciated.
Now to the story. Before I go into details I want to state the main thing: Do NOT be afraid, it is easier than you think.
We pay attention to so many little details on this forum (and rightly so) but when it comes to real life they don't seem to really matter that much, I could name a number of things but believe me no one there is going to sweat on your detailed list of absences or other aspects of your application (you still should get it right though). My impression was if your set of docs is more or less alright and not blatantly complicated then you shouldn't worry much (my case got approved within 45 mins).
A few things you should worry about. PEO Croydon is a madhouse. I swear I thought at some stage I was going to faint. Almost 100 people and waiting area is full of screaming little children, loud-talking individuals, running lawyers and overlapping staff announcements. Jesus Christ, I don't know what was in the head of those who brought their entire families there with all kids, pushers and pregnant wives but it was painful to watch. One would think they looked like refugees rather than highly skilled migrants. Oh well. I know some of you may have dependants but please, for the sake of other people, if you can leave kids at home or arrange them to be with someone then do it for your own comfort.
Logistics (incl. some helpful hints for you):
1) The time of your appointment. Standard form says "arrive 30 mins earlier".
I arrived 1,5h earlier yet still was admitted (thanks to security or my pure luck I don't know). Bear this in mind if you want to save some of your time. I definitely saved mine.
2) Security check+payment+initial docs check+biometrics - all was done within 35 mins. I was impressed with the speed but it was a premature joy. It turned out I had to wait 2 hours just to submit the docs. Don't know why it took so long. And here's another note: you will be given a number, let's say 35. I heard that after 2 hours of waiting numbers like 41, 45, 47, 52 were called out. So what I did I went to the Customer Service window (number 22) and asked if I was overlooked because my number was before those. The lady sitting there confirmed that my turn will be coming really soon and guess what? I literally waited another couple of minutes and was called after that lady passed the information to someone to collect my docs. The morale of the story: if you are under impression it takes too long do not just sit in the waiting area, you can always politely ask a customer service representative. It may help!
3) Case itself. It looked like in the post office. I just handed my parcel with all the docs over the counter. And 45 mins later I got it back. Not a single word asked or commented. I hear people's stories about how they know how much they scored in Life in the UK test and I envy them because I was not even sure who considered my case. A UKBA courier clerk (very young girl) took my package of docs and simply returned it afterwards. Folks describe blond nice looking caseworkers here, well guess what: I didn't even see mine!
OK, I probably bored you to hell with my story but perhaps it will make you more relaxed.
To all of you who still tremble: Good luck settling in Londanabad
P.S. The scheme I applied under was: HSMP+Tier1. Overall number of absences 212 (approx. 42 days each year).
