ILR REFUSED, WHAT TO DO NEXT?

Hi
First of all thanks for reading my post and appreciate your help in advance.

Just to give you some idea about our background and current situation

I live in London with 4 dependents i.e my wife, 3 children aged 6 yrs 9 months, 4 yrs 2 months and 2 yrs 11 months all born in the UK.

First 2 children are school going and we have very good connections with other families/friends and community people. I also do volunteering work for Barnardos charity and our local council disability organisation. Infect, I've received appreciation letters from them. I'm also serve local community newspaper as freelancer reporter and cover government and community programmes.

My case

Me and my wife came in to UK as visitor in May 2004, since then my wife never went back home, I went in 2006 for 2 weeks and came back in the UK.
Now we live as over stayer in this country.

We've applied for ILR set(0) last year 2010 in May and had been refused in september 2010, we then sent our application for re-consideration, again has been refused on 20th of May 2011. my solicitor said that wait for removal letter from UKBA.

I've contacted to new solicitor he he said that the first solicitor submitted our case in wrong category and should have applied for FLRO legacy case.

Honestly and truly I've spent lot of money towards that and got no hope.
Now new solicitor has advised me to apply new case in FLRO based on my children

My questions
1. Shoud I wait for the letter from UKBA? and prepare to go?
2. Will UKBA will visit my home and take us to remove the country?
3. Should I wait for my daughter until she becomes 7 years and then submitt new case? FLRO or any suggestions?
4. What are the things, documents would be helpful for my new case?
5. Legacy policy still exists or discretionary leave can be granted?

Please help me I'm very anxious and upset as well as my all family members.

Awaiting for your help.
Thanks
Sunny

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