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Could anyone kindly advise which is the best way on go on my case? Very much appreciated!!

By 05/03/2012 My total stay in the UK will be ten years, which make me eligible for ten years long residence Settlement Visa. Apparently duo to IND website, my wife can't be on this same application, she has to apply once I'm granted PR.

By 11/2012 My Five years (Work permit three years + Tier 1 2 years) is up, for which my wife can be on the application.

However, because our current Tier 1 (First two year) visa is due to expire in between above dates on 29/04/2012, I can either extend Tier 1 visa in Apr and then apply for PR together for Five year route,
or I need to get the PR for ten year long residence route myself and before my wife's Tier 1 visa expires on 29/04, she applies for PR as dependent.

You may apply for settlement under either category - depending on what you wish - get settlement sooner by applying alone under long residence or wait until you qualify for settlement as an economic migrant and include your wife in the application.

Agree with the above. Bear in mind that if you apply for ilr under the 10 year route she will have to switch on form FLR M before applying for ilr on form set m. She can't apply directly from her tier 1 dependent visa for ilr unless you are applying for ilr together. The 10 year route whilst quicker for you will be more expensive for your wife.

I was in a similar situation (although no spouse nor dependents). I already qualify for ILR on the 10 Years Rule but as I've also been on a Work Permit for a while, and I would also be eligible for ILR on the 5 Years Rule, if I were to wait and apply in December 2012.

My employer's immigration consultants actually advised me to apply as soon as possible on 10 Years and not to wait. They said that more changes to immigration laws are expected next year, and they can only make getting ILR more difficult rather than easier. It's better to apply as soon as you are eligible, than to wait later and possibly regret it.