Help verifying my visa is all good

Ok in all of the excitement of moving and everything else, I've forgotten the specifics on visas and want to make sure I've done everything correct. So my partner and I have moved to the UK. His visa says "SETTLEMENT SPOUSE/CP (KOL REQ)" and is valid from 12-09 to 3-12 w/ No recourse to public funds(and I have to say that the visa was easier and more flexible than I expected). So when we entered LHR the immigration officer stamped the passport, but half the stamp is illegible, it reads:

LEAVE
 EMPLOY
   PUBLIC F
(and the date)

Did this go through correct? He is set to take his KOL test in the next week or so, and then do we apply for an ILR, or is it all good? (and if we have to apply for ILR do I generally have to send everything all over again or is Passport/visa and KOL test ok?) He will apply for citizenship after 3 years. I just don't want to spend thousands of more £ between then and no than we already have. Thanks!

The stamp is just validation that he actually entered on his visa and if it's illegible then you'd need to send something that supports the date you claim he entered the UK, such as a completed itinerary or boarding pass for his flight.

As for ILR applications you will have to apply & provide all the documentation that you provided previously just updated with current paystubs, bank statements and such.

but does he need to apply for ILR or can he just apply for citizenship after three years. (i know the visa expires in like 27 months, but if we can extend it).

but does he need to apply for ILR or can he just apply for citizenship after three years. (i know the visa expires in like 27 months, but if we can extend it).

In order to qualify for Naturalisation as the spouse of a British Citizen, he must be resident in the UK for 3 years AND be free from immigration control.

'Free from immigration control' means that he must hold ILR. There is no way around it.

Here is a recent similar topic that may interest you: http://talk.uk-yankee.com/index.php?topic=60097.0

does citizenship go from 3 years after receiving ILR or 3 years after settling?

does citizenship go from 3 years after receiving ILR or 3 years after settling?

It's a 3 year residence period from the date you enter the UK.

does citizenship go from 3 years after receiving ILR or 3 years after settling?

Three years after arriving in the UK on the spousal visa, but you must have ILR before you can apply for citizenship. Most people will spend 2 years on the spousal visa, then 1 year on ILR before they are eligible for citizenship, but because your husband has the KOL Req'd stamp, he doesn't need to wait the 2 years before applying for ILR.

For people holding work permit visas, the time to citizenship is 6 years... it takes 5 years to be eligible for ILR, but then they must hold ILR for a minimum of 12 months before they will be eligible for citizenship. Luckily, this is not the case for people on spousal visas .

Three years after arriving in the UK on the spousal visa, but you must have ILR before you can apply for citizenship. Most people will spend 2 years on the spousal visa, then 1 year on ILR before they are eligible for citizenship, but because your husband has the KOL Req'd stamp, he doesn't need to wait the 2 years before applying for ILR.

Actually this isn't always true...

It's 3 years residence in the UK and you can count any time spent 'under immigration control' IE having restrictions on you for example I shall use myself:
Arrived 31 August 2007 as a visitor until 7 February 08, returned to the UK on 23 March 08 on spouse visa, ILR in March 2010 and then I am eligible to apply for Naturalisation based on the Residency qualifying period of 31 August 2007 - 31 August 2010.

The same is true for persons who arrived on a fiancee visa as well.

Actually this isn't always true...

It's 3 years residence in the UK and you can count any time spent 'under immigration control' IE having restrictions on you for example I shall use myself:
Arrived 31 August 2007 as a visitor until 7 February 08, returned to the UK on 23 March 08 on spouse visa, ILR in March 2010 and then I am eligible to apply for Naturalisation based on the Residency qualifying period of 31 August 2007 - 31 August 2010.

The same is true for persons who arrived on a fiancee visa as well.

Yeah, I actually included that at the bottom of my post at first (about being in the UK exactly 3 years before the application date, even if it wasn't as a spouse, and meeting the 'no more than 270 days outside the UK' requirement), but then decided to delete it as it wasn't actually relevant to the OP's situation.