PR Application for Extended Family Member of EEA niece in UK

[filipinadurafe]

Hi there, I came to the UK from the Philippines 4 years 9 months ago as an Extended Family Member of an EEA National (my niece married to an Italian living and working in the UK - my niece also has an Italian passport).
I was issued with a Residence Document in my passport allowing me to work - I also came with my young daughter.
My 5 year Residence Document is due to expire on 29 September this year 2015.

I have the following questions as I am now quite scared having read through all the information with regards to applying for Permanent Residency.

Firstly my 'sponsor' that is my niece and her husbands status have not changed and will not change.

I believe that I most use Application Form EEA (PR).

1) Firstly there is a section asking about benefits that I am receiving from the State - is this a catch question because I didn't think that we were allowed to claim benefits - the only one that I am claiming is Child Benefit for my daughter which I did ask if I was entitled to - they told me yes and let me claim it.
Now I am worried that maybe I wasn't entitled and that this section on form EEA (PR) is to catch people out.

2) Most importantly, there is a Section that asks if I am still dependent on my sponsor OR if I am still part of her household.

This question and section concerns me - I was dependent on my sponsor in the Philippines - that is how I obtained the EEA Extended Family Member Residence Document in the first place to come here.

However, since I and my young daughter have been here, we initially lived for a short while with my niece (my sponsor) but then I started to work - earning my own money and living in various other places, initial renting a room and now renting my own flat ........ that is living not with my sponsor and not being 'financially dependent on her'.

Clearly, whilst here in the UK and being able to work, I haven't been financially dependent on her and couldn't prove that I was as I haven't been.

........ BUT how can I prove that I have been a member of her household when I haven't lived with here for over 4 years - all my documents are in various addresses according to where I have been living - (always in the same town as my sponsor) ... what do they actually mean by 'still part of her household'?
They don't say living together - we're in contact every day.

Am I going to be turned down because I don't live in the same residence as my sponsor?

Very worried now. Appreciate any advice.
Thank you,
Love Durafe xx

[Obie]

You may have difficulty obtaining Permanent Residence Card in the above circumstances.

You are required to comply with Regulation 8(2) requirement for the duration of your Residence Card, to be able to qualify for Permanent Residence Card.