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I agree, changing last name now is a big hassle, and will be a hassle till PR gets through. I know of a friend whose wife changed her name halfway through the process. When she got PPR, it was a big problem apparently, and got her file delayed.

Regarding specifying marital status, it is noted in indian passports by the way of specifying spouse's name (in the last page I think, where father and mother are listed too). We did this change as well when we were applying, just because we were advised by family and friends that it will further show that our relationship is genuine. I don't know if it really matters though, but if you do go ahead with it, add another few weeks to the process as a new passport could take at least a couple of weeks.
 
I think you guys are right, it is suggest to add the name in her passport just as an added benefit to show wits more genuine.

Hopefully we can add it quickly and apply the PCC right after.
 
Hey Guys,

Here is the update:

She didnt change her name on the passport but added my name as a spouse on hers. She went through passport seva under the tatkal process; it took about 3 hours with the waiting to apply and she got a fresh passport issued with in 2 days.

We decided to go and apply for the police clearance through the seva office - We booked the appointment about 10 days after; thinking they will come for verification but after about a week we learnt they don't come for verification if the old passport was issued less than a year.

So she went to the seva office and got the police certificate in about 45 mins and a stamp on her passport as well. She said it was very quick and professional.

Finally we are good to apply.

Thanks guys
 
Congrats! Glad it was smooth for you.