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This is an extremely good question, and it goes right to the heart of your problem.it would seem that DWP are using the 2004 law and not considering my previous time here in the uk, surely having already spent 5 yrs here legally from 1997-2002 that i am entitled to right of residence.
Well not quite! The EU Directive that came into force on 30.04.06 means that someone exercising their EU Treaty Rights in the UK for 5 years, prior to 30.04.06, would automatically get PR status on 30.04.06.it would seem that there is a law passed in 2006 that states anyone who has spent 5 lawfully prior to the 2004 new eu laws can be classed of having a right to reside.