french Schengen Visa refused

[de3622]

Hi All,
I have been issued second time for residence card in november 2012 , unfortunately my passport had expired when it was office so they issued my residence permit on a 4 paper.i supposed to attent a wedding in june so i went to french embassy to apply fora schengen visa on my own right(my husbands passport expired and we did not notice)i was told they wont accept my aplication because my visa not sticked on one of the passport pages.i did called the home office and they told me its better to have the visa on a passport instead of a paper!!!and its better for me toapply for aresidence card again!!!can somebody tell me is this can be right?
Thanks

[sheraz7]

With EEA2 RC you do not need schengen visa if travelling together with EEA national partner. Paper RC along with passport must havee same worth as its stamped on passport as a sticker. Moreover, applying EEA2 RC only for the reason for sticker stamp on passport will be equal to make a new application with 6/6+ months processing.

[Graham Weifang]

Im I reading this right that none of you have a valid passport?

Both passports finished?