Even though I am not a lawyer, I have done lot of research on defintion of 245i vs 245k. Are you sure about "you cannot apply I-485 when you are out of status. 245(K) covers previous out of status situations not present one"? Actually, I was 245i applicant and got my green card approval. Your friend still can apply for 485 under 245(k) for his wife, but like I said, I am not a lawyer. please have him talk to his lawyer.
Here's the information that I extracted from the website:
http://www.bcis.com/amnesty.shtml or see below (in boldfaced items for your friend and his wife).
INA § 245
How Do I Benefit From Section 245(i)?
Background
Our immigration laws allow qualified individuals to enter the United States as Lawful Permanent Residents ("green card" holders). after they obtain immigrant visas from a consulate or embassy outside the United States or, for many immigrants already lawfully in the United States, through a process called Adjustment of Status. If you entered the United States unlawfully, if you entered with permission but did not stay in lawful status, or if you worked without permission, you normally would have to leave the United States in order to apply for an immigrant visa. Special rules under section 245(i) may allow you to apply to adjust status without leaving the United States.
You might need section 245(i) if you:
- Entered the U.S. without being inspected by an BCIS official.
- Stayed in the U.S. longer than allowed by BCIS.
- Entered the U.S. as a worker on an aircraft or ship (crewman).
- Entered the U.S. as a "Transit Without Visa."
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Failed to continuously maintain a lawful status since your entry into the US.
- Worked in the U.S. without BCIS permission.
-Entered as an "S" nonimmigrant (relates to witnesses about criminal or terrorism matters).
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Are seeking a work-related visa and are out of status at the time of filing the application to adjust status (Form I-485).
Worked in the U.S. while being an "unauthorized alien." NOTE: There are some groups that may not need to use section 245(i).
The spouse or unmarried minor child of a U.S. citizen or the parent of a U.S. citizen child at least 21 years of age if he/she was inspected and lawfully admitted to the United States, but subsequently overstayed his/her authorized admission or worked without permission, may apply for adjustment of status under section 245(a) and does not need to use section 245(i). Certain persons who are eligible for certain employment-based immigrant visas and who were inspected and lawfully admitted to the United States, but have not violated their status or worked without permission for more than 180 days, do not have to apply for adjustment of status under section 245(i).
They may be able to use section 245(k).
Hope this helps.