In-country dependant application refused, family in uk

[Ayomi]

Good Day,
I hold a valid Tier 1 (General) visa granted in April 2011.
In May 2010, I travelled back to my country with my husband and got married while on Post Study Work Permit which was granted in Feb 2010. My husband had and still has a valid student Visa granted in 2007 which will expire in Oct 2011.
After the wedding, we both came back to the UK on our separate Visas (PSW & Student Visas).
I have now been granted Tier 1 (General) in April 2011, however, I had my baby in April 2011 by emergency Section. We applied for dependant visa for my husband within the UK in May 2011, because of my health and the Baby and relied on Article 8 so he wouldn't have to be away from his family. However, the application was refused on the premise that he didn't come into the UK as my Partner and since he was on a student visa, he wasn't expected to raise a family here in the UK and rely on Article 8 to circumvent the conditions of his Visa (which isn't the case). It was also stated that it is necessary to interfere with family and private life as against maintaining an effective immigration policy. He did not have a right to appeal as he still had Leave to Remain till October. We decided he will have to travel back home to re-apply for Leave to come in as my dependant. However, we realise that if he goes back in October to apply school will be in session then and he would miss lectures and also considering the fact that there isn't a fixed time of response, it could steal into exam time.

Kindly advice on the following:

1) How does the Article 8 work? Can we rely on it again, as of right or compassion?
2) We do not want to extend his student visa, Can he apply again within the UK so he can still attend lectures, be around & in the right frame of mind for his Exams, and also to have time to be with his family as I am not back to work bacause am still on Matermity Leave and will be all by myself if he leaves;
3) After having my baby am I expected to notify the home office as I am still on a Permit/Visa? This is because we mentioned the Baby in my husband's last application?
4) Is there a chance that he may be refused either by applying within or outside the UK?
5) Since we mentioned the baby are we also expected to have maintenance fund in the account to cover both my husband and the baby?
6) Do you represent applicants?

Please I need advice and help on the above.
Thank you

[Ayomi]

good day,
i am yet to get a response please