1) The form mentions about 2 years living together, etc but having arrived here a Fiance visa only 3 months ago we haven't lived together that long. Do we submit a letter saying that we only had the Fiance visa and lived together since November 1st? And send what mail we have here to show living together?
Yes, you do. The FLR(M) form is for various different situations, from people who are switching from a fiance visa or to FLR(M) from a work or student visa, to people who have lived together for several years and are renewing their current FLR(M).
So, in your case, you provide as much mail as you can in both names from the last 3 months, and then write a letter explaining why you don't have 6 in each name (i.e. because you have only been here for 3 months and have not had time to collect 6 items each yet).
2) Do you have to provide a divorce paper for every marriage you declare? My wife first marriage was 26 years ago and she haven't got it. She got her last marriage divorce paper, and we can provide that like we did on the first visa. Do we declare her 1st husband and write.a letter explaining or leave it off the form?
Yes, you declare ALL previous marriages on EVERY visa application you make, and provide the divorce decree for each marriage, each time. If she no longer has the first divorce decree, she should be able to request an official copy from the county where she filed for divorce. This should also have been provided for the previous visa as well.
3) it asks the type of Visa twice, I answered the first as marriage as shown on the Visa, but I answered Family for the 2nd one as it said Work, Visior, Family something about EEA and other.
Yes, it's Family visa (or Settlement - they are both the same type of visa, so I don't think it matters which you put here)
Thanks for the advice, hoping to get it sent off this week as I think it is ok to do it after 3 of the 6 months?
As long as you have all the documents (and the marriage certificate), you can apply at any time between getting married and the visa expiry date. Of course, the earlier you apply, the quicker you get the FLR(M) and the sooner you can qualify for ILR in 5 years' time.