I received my Permanent Resident Status in Jun 2002. ( as a spouse of a US citizen) - my conditions were removed, I guess around June 2004, though I don't think that date is relevant for naturalisation.

I am now getting ready to file for citizenship (yes, I am aware I have been eligible to do this since jun 2005).

My question is, since I have now been a Permanent resident for over 5 years, is it necesary for me to include my spouses birth certificate, our marriage certificate and three years Tax Transcripts for our joint returns?

I do not really have a problem with filing that documentation, except we have filed for a tax extension this year, and I don't expect the 2006 transcript to be available for at least another 2-3 months.

Is there any benefit to selecting the "spouse/3year" option, as opposed to simply selecting "having been a permanent resident for 5 years?"

Thanks in advance for any advice.

About the only advantage is if you had difficulty proving you qualified for the "5 year" option, because of some physical presence issues, time outside the country soon after receiving the Green Card, or something like that.

If it's clear that you DO qualify based on the "5 year" option, then go for it. The "3 year" option has strings attached that depend on you proving the bona fide nature of your relationship, proving that you live together, and proving that the marriage continues all the way up to the date you take your oath. While it's usually not too hard to prove these things, it's easier to keep things simple if you can.

Hmm, I got my permanent residency in Jun 2002,
I was out of the US in Dec 2002 for 25 days - visiting parents in Australia
I was out of the US from Oct 2003- Apr 2004 (168 days)- working/visiting in Australia
Out of the US In July 2004 - 7 days holidaying in Mexico with spouse
Put of the US in Apr 2005 - 6 days visiting spouse who was working in Canada for 3 months
Out of the US in Oct 2006 - 21 days visiting parents in Australia with spouse
Out of the US in Aug 2007 - 12 days, visiting spouse who is working in Mexico for 3 months

Until I started filling my application, I had no idea how may times I had been out of the USA. Regardless, none of these times excess 180 days, and, totalled up, they are well under the limit.
Given the above information, do you think I would have difficulties with the "five year" option.

Our AOS interview was very brief, and trouble free. I do think coming from Australia - perceived as a good country to live in - helped convinced the INS (as it was back then), of the "genuineness" of our case. I hope this will carry over the the citizenship qualification also.

thanks you for your comments, I do want this to go smoothly, but, would like it to be completed as quickly as possible - for no real reason, other than a desire not to have future residency requirements to consider if job opportunities become available.