HSMP for student in UK

Hi Guys!

This is a question for my friend. He came to UK on student visa and completed his degree in dec-2005(BBA). After that he applied for HSMP, everything worked out fine but it comes out with an objection that we need to have your DEGREE as detailed mark sheet is not enough.

Now he finished his studies in dec-2005 but will get his degree in sept-2006. It is bit tricky how this gap dec-sept is being treated.

Now 3 questions

1): While on student visa but completed his degree,can he work full time?
2): How he can cover this gap as mentioned above before applying for HSMP again after getting his degree?
3): Someone told me that if you complete your degree in UK, you get residency and you can work (i am highly doubted about truth of this statement), is it true?

Rgds,
Gunda