I received the Affidavit of Support fee bill and a copy of the DS-3032 in the mail. What is all of this for? I assume that these have to do with the I-130s. NVC has already recieved the I-129F and we are currently in AR (sucks, really). Now we recieve this. Should we abandon the K-3 and see what happens with this stuff? What is the whole process once this information comes in? Do i start filling out an I-864 and send it off with the fee, or do they get the fee and then send me an I-864?

Please help.

Yes, all these are for I-130. The non US citizen foreign alien spouse can take care of the choice of agent by emailing NVC. That way, you can save some time. Few days ago, I wrote a sample text at the CR-1/IR-1. Please find it and hopefully, it will be helpful for you. If the choice of agent (Ds 3032) is taken care of by email, you don't need to send the DS 3032 to NVC. When you pay AOS Fee bill, NVC will generate I-864. When you take care of DS 3032, NVC will generate IV fee bill ($380.00). If you have more questions, you can PM me.

You can continue with the I-130 and have a back up for the I-129F if you want to. If you get the K3 approved you can also go back and interview for the CR-1. It's a MUCH MUCH better visa than the K3.
No need pay the upcoming K3 visa $1015 AOS fees. Plus she gets her GC and SSN in the mail shortly after arrival in the US.
It can take a LONG time "sometimes" for peeps adjusting status to get GC and SSN. Sometimes not.
Shortest is about 2 months but doesn't happen that often. Some peeps are going on 8 months +.
Not having the GC wasn't that bad a thing for us. No SSN caused lots of problems. No matter tho as K3s can't get SSN until they have GC in hand!