talu76,
Did you do the medicals for your spouse too? From your time line I don't see that. Your medicals are valid for a year but you have to do that for your spouse too. Once again regarding the ID card they might need it for your spouse too, I also see a lot of references to incomplete application and the ID not being legible maybe the copy was not clear. I am not sure if all these together are causing issues.
You might also want to request caipsnotes, go to
www.caipsnotes.com for detailed instructions. They will show you in detail all the notes on your case. They are a little tough to decode but it helps in certain situations.
If you have done your medicals for both of you, sent the ID cards for both of you and completed application forms for both of you clearly and complete then you can fax them a letter asking for clarification.