Please advice - 'Continous Leave' towards 10yrs long stay

Please advice on the situation below:

Mr X's student visa expired end of Nov 08. He applied for extension before visa expired. Then he got his result in January 09. The application is still with HO. He rang HO to know whether he could vary his leave to PSW while the student visa application with HO. The adviser (HO) advised him to ask the caseworker whether it is possible to vary the leave while student visa application is still undecided and there is no harm in asking the caseworker. If the caseworker thinks ok, then he will send the necessary form in post.

Now if the caseworker allows him to vary the application, then would these period of leave (from end of Nov 08 and now) be considered as 'continuous leave'?