this is my first post, so apologies if I do anything in the wrong way

I'm a Slovak national and in Sept 2010 it's been 5 years since I came here.
I want to apply for the UK citizenship, however, my absences up till now are totalling 421 days.
My absences in the last year are totalling 121 days.
That is mainly due to 95-day absence in 2009 and 60-day this year.
My question here is: am I eligible to apply at the moment ?
I have seen the UKBA website and basically it would be decided at the discretion, as it is over the basic days out limits.
The problem I face is that no one can tell me for sure if the discretion will apply in my case,
before you send in the AN aplication form and pay 750GBP fee. Obviously , i don't want to lose that amount.
then the next question is: when you submit the application and they need to contact you, do they send out a letter or phone you/email you?
also , would it be ok to ask the landlord of the property, where I had been residing for the last more than 3 years to provide me a reference ?
He's UK citizen etc.
and in application form AN, in section 3, there are questions regarding current employment status.
At the moment I am a Masters student at a University and not in employment.
Would I still be eligible to apply? What would I need to fill in that section then?
thanks