How to get dependent spouse vias

[khamkoko]

I am married to my husband, who was granted as a refugee in 2007. My husband has a initial 5 years to stay in UK and he can apply for indefinite leave and British citizenship after another year. His stay will expire on in April 2012.
We both are originally from Tibet and we married in 2009. I came to UK in July 2008 with student visa, which expired at the end of Oct 2011. Then I applied for the extension to remain in UK as a dependent spouse on the basis of marriage using FORM FLR (O) and I was granted a discretionary leave for 4 months, which will expire the same date as my husband's 5 years stay.
The following is the letter from the HO:
I am writing to inform you that although you do not qualify for leave to remain in the UK under the Immigration Rules, it has nonetheless been decided that discretion should be exercised in your favour. You have therefore been granted limited leave to remain in the UK in accordance with the principles set out in the HO Policy instruction on Discretionary Leave.
Before the period of leave that you have been granted expires, you should either depart from UK or apply for an extension of stay, explaining the basis on which you are seeking to remain longer. Any application will be considered in the light of the circumstances prevailing at that time.
Where an extension of Discretionary Leave in sought, the request will be subject to an active review. A person will not become eligible for settlement until they have completed 6 years of Discretionary Leave.
The leave you have been granted may be subject to review before it expires if, for example, should the conditions in your country change significantly such that your return becomes possible.
I know that my husband is going to use form SET (protection route) to apply for the settlement, but I have no idea what to do.
I am 3 months pregnant and my due date is second week in July 2012.
My questions are:
Can we both apply for the extension using the same SET (protection route) form?
Or
Do I need to apply for my extension separately? if so, which form can I use?
Do I end up applying for again and again until it reaches 6 years?
Is there any chance that I can get the spouse visa?
Your advice will be much appreciated and let me know if you have any questions.