I got my ILR stamped along with my wife and 2 year old daughter at PEO Croydon yesterday !!
Everything went smoothly for me. I am describing in details the procedure and application for other members to benefit.
We have booked the appointment for 1:30 PM of 4th May 2011. We were told to arrive at 1pm. The Lunar house is very close to West Croydon station. We arrived at 12:40. They let us in immediately. There was a security check at first. After that a staff asked if we are making a premium application. Mine was a premium application in SET(O). So they send us to counter 5 in the ground floor immediately for initial check.
The person in the counter took my passport and application form. He asked me on what basis I am making the application. I told him it is WP+HSMP+Tier1(general). He then searched records in the computer and told me it is WP+WP+HSMP+Tier1(general). Then he asked me if my salary has gone up always. I answered yes. Then he asked me if my wife has always applied with me. I told him yes first but then remembered that in the last Tier1(general) application, my wife has applied separately for entry clearance from India. So I told him that. Then he asked me if I have all the P60s. I told him yes. He asked me if my holidays don't exceed 6 months. I told him yes and in no occasion it exceeds 3 months. He then stamped the application as Valid, gave us a token number and send us to the first floor for payment.
We went to the first floor. One lady directed us to the payment section on the left. There were no queues. One lady in the counter took the payment with a smile. I had to part with £2700 with pain. I paid with my credit card. The fee for dependants has increased so much. That is £1350 for myself and £675 each for my wife and 2 year old daughter as well
We decided to go for the premium application over the postal to save us time and also to keep things in our hand when rules (and fees) are changing so fast. I missed the fee increase in April. I could have applied in March, that would have cost us £1950
Anyway we then went to the waiting area in the same floor. We kept on waiting past our appointment time. There were two boards where token numbers waiting are displayed. They were announcing the number called. The place is ok but not very tidy. There is drinking water facility and a coffee shop in the 2nd floor.
We were frustrated when nobody called us even at 2:15, so I went to counter 22 to enquire. The lady in the counter told us that they were running 2 hours late, but things are getting faster after lunch. So we kept on waiting. Finally at around 2:40 we were called to a counter.
The British lady in the counter asked for my application form and passport.
I gave the application form, passports and the detailed covering letter I was carrying.
She then told me to give all the supporting documents. I gave her our life in UK pass certificate, payslips from my first year, previous 4 years P60, last 12 months bank statements, last three months payslip copy certified by my employer [my employer gives online payslips only], original WP, original HSMP approval letter, 6 council tax bill in my name and my wife’s name. She checked the documents quickly and gave me back the first years payslip, six months bank statements telling me that she will not require them. Then she asked me if I am carrying any employer letter. I was not carrying any employer letter specifically for this purpose. It's not mentioned anywhere in the application form
But luckily I was carrying all the letter my employer gave me -- from the appointment letter to the yearly salary review letter.
I told her that and gave all those to her. She picked up my salary review letter of 2010 and gave back all the others to me, telling that letter is perfectly fine. I told her that one is old and I have the 2011 salary review letter as well. She then took that, searched for my salary in that and took that as well. I think she was looking for any letter from current employer with salary in that.
She then told us to wait in the waiting area or we could go to the coffee shop upstairs or also can leave the building and come back. She will call us again with the decision after an hour. We then went upstairs to the coffee shop, eat some of the foods we carried with us and use the baby changing room. My overall impression on the caseworker is that she is polite, helpful but tough with the checks she does.
I was confident with my application, but was worried with two facts.
1) My previous employer is now closed.
2) My wife is not living continuously with me for the last two years. She lived with me in UK for 3 years, then was absent from UK for 1 year and then again she is living with me for the past one year.
The rule says your partner should be in UK for two years with you, not last two years
After an hour she called us again and informed that my application is perfectly fine, Settlement is granted
She gave back all the documents excepting passport and told us that our passport will have the new endorsement with ILR and we will be called to collect them from counter 22. We waited happily for some more time and collected the passports when called, checked the ILR stamp, date of birth in them and left the building to the adjacent shopping centre to celebrate
Good luck with your new status and no more worries about visa and Home office... 
although they don't ask any question to dependants.