novio2010

Congratulations! I am so happy for you guys, finally USCIS nightmare is over for the next two years. ENjoy your GC! good bye

Filing the I-130 by itself most certainly does NOT change her legal status. It merely establsihes a familial relationship which, by itself, confers zero legal status. Also, her work authorization has been revoked because the thing it was based on, the I-485, was denied.
You will file a CONCURRENT I-130/I-485 for each person, and once the package is accepted for initial review, they will be in another period of authorized stay, just as before.
You will not be able to overturn the denial, so don't waste time. An I-485 can be approved based on an approved I-129F petition and subsequent marriage to the petitioner within 90 days of entry into the US (category C on the I-485). You did not follow that, and the I-485 was correctly denied. It is dead.
If you file a NEW I-485 along with the I-130, you will basing your I-485 on a marriage to a USC and legal entry (category A on the I-485). It is a new AOS application, based on a new category.
ETA for above: The children will need their own I-130/I-485 as well. The I-130 for each of them will establish the step-parent relationship and they entered with legal inspection. They will not be sent home alone.

No, your wife can stay here and file for adjustment of status again. HOWEVER, you must now file a I-130 with it as well, to establish a marital relationship. The I-129F is void because you did not marry within the 90 days. But as long as they all entered with inspection (they did) you can file a CONCURRENT I-130/I-485 Adjustment of Status package for them all, and they can wait it out inside the US.
Here is the VJ guide: http://www.visajourney.com/content/i130guide2
You will also have to file this for each stepchild.

I am not going to wish you and your brother good luck on your visajourney. You and your brother are breaking US immigration laws.
When a Peruvian like you and your brother abuse your visitor visas, it makes it harder for your fellow Peruvians to come to the US to visit their families. What you and your brother are doing affects your fellow Peruvians in a very negative way.
When a visitor visa is abused, the US Embassy is less likely to give them out.
People like you are the reason this Peruvian boy cannot get a visitor visa; http://www.visajourney.com/forums/topic/364745-how-to-bring-brother-in-law-from-peru-who-is-a-minor/page__gopid__5334193#entry5334193
What you are doing is hurting other Peruvian families. It's people like you that keep Peruvians from being able to visit their families.

And you obviously have no clue about our immigration laws....the OP did not claim he was staying in a tent, eating wild mushrooms...no one....I repeat for the intellectually impaired, no one gets a 6 month paid vacation and no one can realistically survive without working illegally, for 6 months in the US with seven grand.....it is not possible unless you camped out and raided trash cans.
Then backpack in Europe.