Tier 5 Visa

I am a 29year old Canadian citizen, I have been in the UK since June 2012 under tier 5 YMS visa, which is going to expire in June 2014,
My husband is a Brittish citizen, we have been married since July 2011. I did not apply for the mariage visa when I initially came here because I was not sure I wanted to stay here permanently, so I preferred to try under tier 5 YMS which was a lot easier and faster to obtain.
I phone the UKBA and was told I could apply for an extension using for FLRM which will extend my visa for another 2.5years. I should only apply for this extension 28days before the expiry of my current visa, which is a very tight time frame and it's worrying me. First, I want to confirm that the information I was given is the correct one and this is the right form to apply for? I am currently employed and so is my husband, so meeting the financial requirements is not a problem. Is there anything else I need to worry about?
When will I be able to apply for indefinite leave to remain?

thanks

ILR in five years.

I believe you can switch to the spouse category on form FLR(M) at any time before your current visa expires.

See also, Can you apply? (click).