Hi Bruce,

I think you should make contact with UKBA and ask the status.
Three months is quite a long time actually, although there is a bit of a backlog.

If you want to check on the latest info take a look at their page Guide to visa processing times

In terms of general service standards here's what they say:-

Our standards say that we will process:-

95 per cent of settlement applications within 12 weeks of the application date and
100 per cent within 24 weeks of the application date.

Following the link above it seems that at December 2011 they had achieved 100% of settlement application within 90 days

Would be great if you could post some feedback here.