overstayed but application was valid??

my working holiday maker visa was expired on 21st nov 2005, my previous employer verbal promised me to extend my working holiday visa to work permit and they shown me the conversation email of their company solicitors that i am qualified for work permit. i took it granted and i did not bothered them, at 8th dec 2005 i am wrongful dismissed by them. but one of the senior staff promised me my work permit application is under process so i can switch it to others company when it grant. on 5th feb 2006 i check with home office and home office said there were no such application made on behalf me. (that's mean i am illegal overstay.)
i married here at 21st july 2005, i have a son born here at 9th dec 2005 (my son born after my visa expired, and thats why i am overstayed because i cant left my pregnant wife at uk, and my manager said i am legally entitle here while the application is made). My son left uk when he is 4 month old. my wife switch her working holiday maker visa to student visa at june 2006, i applied further leave to remain at end of 28 june 2006. (after my wife successfully extend her student visa at june 2006)
home office said my application was valid and provided an applicant has permission to be in the uk when an application is made, he or she is legally entitled to remain here on the same condition previously granted until the application has been decided (letter date 17 jul 2006), then they asked me to waits for their respond but i heard nothings from them since then. the point is my solicitors said when passport keep by home office i am legally entitle here, but the letter said the previous condition when i summated my passport (was over stayed)
i bring my former employer to employment tribunal at 16th august 2006 but i didn't win the unfair dismissal case and cheats on work permit application as i don’t have the black and white. But I work until 1st of Jan 2006 which slightly over my visa status for them at last time.
back to my question, how can i extend my stay in uk? as my wife student visa had successful renew on august of 2007, my son passport also summated with my wife flr application and my son got the 1 year ltd leave to remain. But i still heard nothing from home office.
i have a certified accounting finalist certificated (equal to master degree, from association of chartered certified accountant uk) and i am 25 years old.
I have copy of all my payslip and also I have the letter from employment tribunal (they strike my case out as the chairman of hearing corrupted on the immigration officer letter, they can't determine I am legal or illegal as the status extend while I am making the application to home office I was
illegal overstayed). As I am really don’t have intention to overstayed at this country, I did appointed another solicitors firm to take my previous employer to tribunal for cheating me on the work permit application. Would the proof of my pay slips and the employment tribunal help?

The solicitors firm I appointed to make the application already wind down, they failed to help me chase up the application. What they said is if I am disturb homeoffice on consideration of my case it doesn’t bring me benefits.
I asked another solicitors firm, they said i cant do any things now. The only thing i can do is urge the HO decide on my application than appeal if it is unsuccessful. They gonna charge me £3000 plus vat to appeal behalf me. But it make no sense that my wife student visa gonna expired at October of 2008.
What is the solution you guys recommend? Thanks.