When did you arrive in UK, and are you married to a British citizen?
And when you say you were given a settlement visa, do you mean that you have ILR or ILE?

Without these details, it is impossible to offer any suggestions.

The application AN(NEW) and guidance notes can both be downloaded from http://www.ind.homeoffice.gov.uk/applying/nationality/formsandguidance/ (scroll down the page when you get there...)

paul

i have an ILR i have stayed here for more than 5yrs now, started with a working visa and given an ILR visa dec 2005..so can i apply now though i haven't has a year yet with my ILR visa? 

No - your friends are right. You need to be here without time restrictions for the 12 months leading up to your date of application - but December is only a couple of months away! 

paul

passed the test last week..which site can i use to download application for citizenship... can i apply now since i was given settlement visa last year dec 2005.  my friends told me i can't apply until i had that for a year...please advise thanks!

Your friends & P Pron are right. Also, you need to be aware of

1. You should have been physically present in UK on the day your application reaches Home Office. If you had been out of the country for a couple of days on the day the application reaches the Home office, then your application will be rejected. Strange but true.

2. There are time restrictions on how many days you can be out of the country

a) Not more than 90 days in the past year AND

b) Not more than 450 days in the past 5 years

 PS : Unlike ILR where you could apply 1 month before the completion of 4 years, for Citizenship you have to apply on or after completion of 5 years.

It would be wise to download the form & start filling it up. That might bring more questions & you can be ready when the day arrives with a perfectly filled application form. Also it will give you time to get all your documents handy. 

This Christmas is gonna be great for you :0