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Hello

In the end of 2013, I will have been a UK resident for 10 continuous years (without any gaps). The last 2 years of those will be as the spouse of an EEA national.
I have read UKBA guidelines and some threads on this website, which say that my PR application will depend on the discretion of UKBA.
However, I would like to know if anyone has ever come across such a situation? Or if anyone has had their application successfull in a similar case? Also, what factors UKBA consider when they apply their discretion in such cases.

Any replies and advice will be much very helpful and much appreciated.

Well the guidance state that if you meet all the conditions for Long Residence, other than the fact that for some of the ten years period, you held a residence card, the caseworker should exercise discretion in you favour and take into account those period, provided you can demonstrate, they were in accordance with the EEA regulation.

Therefore you should be fine. Provided you meet all the other requirements, and have passed the life in the UK test

Thanks Obie!
On a separate note, when I apply for myself, should I apply for my EEA national spouse as well, so that the indefiinte leave can be given to both of us. This is just to know the procedure for the EEA national spouse's eligibility for British citizenship in future. Will the spouse have to also apply for ILR first on the basis that I will have it (presumably), or whether they qualify for citizenship in future in their own right ?

It does not work like that. You will first have to apply for ILR and if successful you can apply for LTR for your spouse and after that ILR. I dont think this make since at all, as the EEA national would have qualified for PR in her own right by then.

Under the 10 year rule, you cannot have dependants.