OK...My wife got her passport back yesterday. I don't know the proper way of posting timeline so I'll just write it here.
Application Received June 8, 2011
File Transfer - July 26, 2011
Additional documents requested - April 8, 2012
Additional documents requested (2nd time) Some time in July 2012 I believe.
Online status changed to "In process" Sep 22, 2012 I believe... Could have been Sep 21, 2012
Passport requested and re-medical - Sep 26, 2012 (Date on letter Sep 24,2012) Received it quick....(Surprised)
After about a week of sending passport the online status remained "In process" but now my address was appearing there too.
Passport Sent - Oct 10, 2012
Received Passport back on Oct 20, 2012
Status still is "In Process"
but who cares... she got her passport back

Can't understand the nature of women... Before she got her passport.. she was crying everyday and asking me when she will get her passport back.. and now I told her to come early but she wants to come on Nov 6...