I am hoping someone else will also help you here but if Home Office told you that you don't need to renew visa then they might be wrong.  By standards Home Office rules, this is not their procedure. I am assuming many things here because you did not mention why you had Indefinite for only One year.  Because Indefinite means INDEFINITE (No Expiry Date)

I don't want to raise any unnecessary concerns for you but I want you to immediately check with Solicitor or the Citizen Advisory Bureau. Keep it in mind that Indefinite does not have an expiry date. You can also call Home Office number they will let you know on the phone.

Other things I am assuming as they are not clear from your e-mail

You also mentioned that you got this Visa as a settlement Visa that means that you receive it from your own country on the marriage basis. This is supposed to be your first visa to enter UK and you should have applied to home office on or before 23/04/2004.

You should immediately check with Home Office or Solicitor or Citizen Advisory Bureau, unless you were in the country already and your case is under exceptional circumstances. I also hope that you have some reference from the home office that you went there and they said in writing that you don?t need to renew and just apply for Naturalization after three years.

If you have a valid Indefinite stay your Baby is suppose to be a British by birth. Assuming you are living in UK.  You should be getting Child Benefits for the baby also.

Hope this helps.

Waheed

I guess you were the resident of EU and that is why you were given Indefinite leave at the airport. I wasn't familiar with that procedure because I was given 1 year visa first and then I had to renew it to OLR.

Thank you for informing the misinformed. I am sure someone else will benefit with this.

Do i qualify for naturalisation? i'm married to a british citizen and i had an indefinite leave to enter the uk 0n 23/04/2003 to 23/04/2004 (settlement visa).I went to the home office in 2004 and i was told i don't need to renew but can apply for naturalisation after three years. I have a  baby born here, in this case what happens to him?