Yeah I got a PM as well, and wrote a detailed reply. I'm going to post it for Elise as there's nothing particularly personal there.
First things first, why is he out of status? Did they refuse another visitor record extension, or did you simply not apply for it?
Are you sure you want to go the inland route? It's usually slower, and has no right of appeal.
If you do decide to stick with inland, you send the OWP / restoration of status application together in the same envelope with the PR application. Tick boxes C and D, and include $200 restoration of status and $150 work permit fees. Once granted approval in principle, in about 9 months, they'll restore his status and issue the open work permit.
If you include both applications together in the same envelope, they'll usually know what to do with it - i.e. put it aside and process after AIP on the PR application. Occasionally they mess this up. You can avoid problems by very clearly writing in the "My request" section that this is an OPEN work permit application submitted together with an inland PR application, and you would like it to be set aside and only processed once approval in principle is reached.
Even though you're married and have a child, it's still important to include a good variety of evidence showing that your relationship is genuine. If you don't, they may ask for an interview which means long delays. Much better to spend an extra couple of days putting together a bullet-proof application to begin with. It's your job to convince them. See IP8 and OP2 for the types of evidence they're expecting to see:
http://www.cic.gc.ca/english/resources/manuals/index.asp
IMM 1344A C6 b and c are not applicable to inland applications. Like it says:
"If you are sponsoring a member of the spouse or common-law
partner in Canada class, do not complete b) and c); proceed to 7
immediately."
What that's actually all about is the fact that for an outside Canada sponsorship, if the applicant is legally admitted to a country on a work/study permit or visitor record longer than a year, they have the option of being processed at the visa office responsible for that country. In the case of Canada, that's Buffalo. For example, if someone from the UK was in Canada on a 1-year work permit, being sponsored at the same time, they'd have the option of processing at either Buffalo or London. Since Buffalo is ALSO the office responsible for his country of citizenship, for US citizens it doesn't actually make any difference. Note, however, that he's not currently legally admitted to Canada (out of status) so, if you were going the outland route, you'd have to tick "no" to 6 b.
Now, back to the first point, are you
certain you want to go the inland route? Buffalo is so much faster for straightforward spousal sponsorships. It really depends what your priorities are at this point. If you want him to stay in Canada with you for the duration of the process, above all else, at all costs, then inland is the right decision. If you want him to be able to work, get health care sooner rather than later, outland might be the better option. Outland applications are usually finalised (completely) faster than inland even gets approval in principle - so you get to work faster. Since he's now out of status, inland gives you some degree of assurance he'll be allowed to stay in Canada.
It's also worth remembering that there's no right of appeal inland. For most that shouldn't be a problem, but if there's any complications or possible ghosts in the closed (even something minor from years ago) it's worth taking the decision whether or not to preserve your appeal rights quite seriously.
If you do decide to go for the outland route, you could do this...
1. Submit the outland PR sponsorship to CPC Mississauga ASAP. Just the sponsorship/PR app - no work permit or restoration of status.
2. Once approved to sponsor, in about a month, submit a (separate) application for restoration of status as a VISITOR (not worker) to CPC-Vegreville. $200 + $75. Include with that proof that the PR application has been submitted (a photocopy of your approval to sponsor letter and a photocopy of the $1040 fees receipt for the sponsorship/PR application. Your request is that, since you've now applied to sponsor him and been found eligible to do so, you would like to restore his status and have him wait in Canada with you until the PR app is finalised.
3. CPC-Vegreville should then restore his status and issue another visitor record.
Note that the restoration of status / extension of stay as a visitor would have to be
received at CPC-V before he's been out of status for 90 days (December 9th). That means you'd have to have the sponsorship approval back to you, and the extension in the mail (xpresspost, signature, recorded delivery) by around December 1st.
The possible snag would be that, since he's already overstayed and is clearly a long-term visitor, it's possible they could deny the restoration / extension of stay as a visitor. The fact you'd be well on the way to sorting out his PR status by then should weigh in your favour though, and my guess is they'd approve it.
With that option, if they deny the restoration he'd have to leave Canada, but since they're taking 3 months to process visitor extensions at the moment, there's a good chance you'll be very close to completion or the PR application by then.
Personally, the outland option combined with restoration of status as a visitor is what I'd choose, as it means PR status much much faster, but there is that risk he might have to leave.
That's a lot of info - read it over a couple of times
