ilr refused by ukba, help

hi,
i am irish citizen, and my wife is algerian, i have been living in the uk since 1993 and i have applied in 2006 for indefinite as an eea member. we got married in 2006 in algeria where she was issued a visa to enter uk , when we arrived we applied for a 5 year stamp so she can stay legally in uk, the 5 year stamp will expire this july 2011.(we have 2 kids who are british). i phoned the ukba and they have told me that she will not be able to apply for indefinite leave to remain under european law as i have been made redundant since 2008, and unemployed since. i need some help, suggestions, advice and would like to know what can we do to solve this issue and find a different way perhaps to sort out this nightmare.



cheers