Visitor in the UK - Need Advice

My wife is a British citizen. I am an American citizen currently here in the UK for the holidays on a 1-year multiple visit visa. We were married here in the UK Jan 2003 (3 years now). Currently we have an approved visa for her and her 2 children to come live with me in the USA. I have visited the UK before (2001, 2002) and have had my share of immigration issues (denied entry on VWP in 2002 but given leave to enter for 2 weeks, denied visit visa 2003 and 2004 for lack of funds) and finally was granted a visa in 2005. During this time we've kept in constant contact via internet, telephone, letters, etc.

About a week or so after my arrival here in the UK, we've decided that in the best interest of our family, that I remain here in the UK and take up citizenship. Is there any way that I can stay here and change status? I'm familiar with quite a few UK immigration laws, but am unsure as to if I'm treading shaky ground here. Any advice as to how I can go about staying (ECHR, ILR, FLR, etc)? After not being able to see my wife and children for nearly 3 years now, it's occured to me that I couldn't leave them to their own demise again. I'm not allowed to work currently, and my wife is on benefits. Despite our issue here, there's no denying that we need each other, and to be seperated again would be too devastating for me, my wife, and (especially) our children to bear. Any advice would be appreciated. Thanks.

In a word, no. You need to apply for a settlement visa and entry clearance from the US since you're only here as a visitor.... If you were here on a different sort of visa (fiance, student, etc.) you could switch visas from within the UK. But as a visitor, you need to go back and do it from there....

Thank you for the quick reply

Anne is right -- you'll need to return to the US and apply for a spousal visa (FLR).  If finances will be an issue, your wife needs to have someone act as a co-sponsor for your application.  The co-sponsor will have to provide bank statements showing that they have sufficient income to support you if need be.  Your application will need to show that you can support yourself without access to public funds (though your wife can still receive benefits) and that you have a reasonable place to live.  You'll also be questioned about your past visa applications, etc.  It'd also be good to include evidence of your employability.

You can apply in person in NYC, Chicago, or LA or by post, which usually takes 2-4 weeks.  Once you have your spousal visa, you can move here and work immediately.  After you've lived here for 23 months, you can apply for your ILR.  After you've had your ILR for a year, you can apply for citizenship.