Hi Shalona,

Normally, British citizens living in UK are not EEA nationals for the purpose of the European rules. That means that their family members don't qualify and need to apply under the national rules.

There are some possible exceptions if the British citizen is exercising economic treaty rights in another EEA state whilst they and their family members live there.
Requirements are strictly applied in order to prevent circumvention of immigration rules, or the avoidance of visa fees etc.

It would appear that your case does not follow any of the 'normal' routes to UK.

Such cases as yours MAY sometimes use what is commonly termed 'the Surinder Singh route' to access immigration to UK.
If your case could be accepted under this ECJ ruling, your wife would get a five year UK residence card and then at the end of five years she MAY get permanent residency.
To be honest I haven't reviewed this ruling for a long time and have not kept up to date on recent uses.
However, just based on the information you have provided and given that a residence card has not yet been issued, I would very much doubt that you could meet the requirements needed.
To completely satisfy yourself on these points I would suggest you seriously consider just having a 30 minute chat with a specialist immigration advisor (with experience of Surinder Singh cases)

The safest and easiest way, is to submit the regular UK spouse visa application (together with all documents and evidence) and the ILR would be after only 23 months.

To be fair I should mention that there's a good chance that UK immigration for settlement visa's will likely change around April 2012 so by the time you come to apply for whatever visa/route you go for, the rules could have changed significantly.

Hope this helps a little