I'm working so just a quick post while having a break. Yesterday wife got her Birth Cert for real this time and she has submitted it to her local district office.
Both PaLat has signed the documents and now we are in the queue! According to them, it will take another 1 to 3 months and if there no issues. She should get her citizenship in late December or Jan 2010.
Think we are finally solving one of our biggest problems :) Wish me luck!