Non-EEA family member of an EEA spouse-Urgent, please HELP

[max.namestnic]

Dear all,

My nationality is Moldavian (Rep.of Moldova) and I've been legally in the UK since aug'2000. My first 7years were on a student visa and for the last 3years I'm married to a Romanian citizen (EEA member) who is a holder of the "Blue Card", giving her rights to work and leave in UK.

I was granted a visa for 5years in Mar'2008 (exp. Mar'13) as a dependant family member of a EEA national, however not based on my relation to my wife, but on my relation to my sister who is a EEA national herself. Back in 2008 I proved that I was leaving with my sister and she was paying for my studies/accommodation and that I was part of her household.
In Aug'2009, I married my wife but I didn't change my visa, as it was the same type "family member of EEA national".

I would like to know what is the best application/route to go with to apply for ILR/PR or to apply for Naturalisation, would like to know if applying via the EEA family route together with my wife will be cheaper or cost free.
My wife has been in UK for 5years now and she also would like to apply for Naturalisation..

I do believe that I'm a good citizen, have been always working in UK part-time and now full time for the past 4years, have never asked for benefits, managed to get a decent qualification (ACCA), managed to buy a house, have no criminal charges, recently became a father....So I definitely consider myself as a naturalised UK citizen.

Thank you for your time and your help.