passports for my children

I am a UK citizen that was not born in the UK, but was able to get my citizenship because my mother was born in the UK. I just read in another post that my children are also considered UK citizens and I can apply for their UK passport. Is this true? I was under the impression that my childredn would have to live in the UK for three years before becoming citizens.

Since you are considered British 'by descent', you are not able to pass on British citizenship to your children.  (I'm in the same boat.)

Bummer, but it is true that the kids are eligible for their citizenship after residing in the UK for three years, right?

It's my understanding that once they are there for three years they can apply for registration as a British citizen. 

Here's the link to the IND website... http://www.ind.homeoffice.gov.uk/ind/en/home/applying/british_nationality/application_forms/guide_mn1.html

(Note - it looks like both the child/children AND the parent who is a British citizen by descent must reside in the UK for 3 years before applying for registration; and under section C [which is the one I THINK is applicable here] the children would become British citizens 'otherwise than by descent', meaning that any children that they might have that are born outside the UK would automatically become British by descent.)

I have already receive my citizenship, which would be by descent and I have not lived in the UK at all yet. It is correct that my husband and children will need to reside for 3 years.

In a nutshell....yes.  Your children's eligibility to apply for registration as a British citizen is not solely based on your citizenship, but by demonstrating that they are settled in the UK.