help spouse visa refused in country

[moma]

hey guys

background is that a friend of mine has been studying here applied for a spouse visa when he got married his wife has 5 years for aslyum which is valid till 2011.he was refused cos she has Limited leave To Remain.he has a child with someone else and so he was advised to make an in-country application and basing his application on access to a child.his reps called HO and appealed and he has an appeal date soon.but they are asking for 1000 to attend appeal has to be paid before appeal date and he has paid 1000 for the phone call to ask for an appeal.wat can my friend do can he go back to his home country and apply or just sit tight and hope the appeal goes well.and if so what sort of documents can he take with him. the HO have also lost his passport they wont confirm but they say they sent it so i have adviced him to sent for a Subject Access Report to see if they really sent it an dto wat address.it expires soon so he is desperate.....