Can I Live Another State While Writing My Dissertation

Hello.
I am a PhD student on dissertation writing phase in one of the Virginia universities with F1. I completed my course work and comprehensive exam in my first two years. While doing them my wife got a master acceptance from one of the Louisville universities. She applied for visa change from F2 to F1. With out no problem she had it.
we moved to Louisville. When we both visit the government office to change our driving license, the officials told me I can't have kentucky driving license even they said that I can't live another state other than Virginia as my I 20 has virginia address on it.
is that right? What ? Should we live separate to complete our graduate studies? Before moving I talked with my international student office and advisor they saw no problem about my address change as long as I have my current address. And I have changed my address in the school records too.
Beside I found their reaction kind of nonsense , can't I live another state in my last years while doing my research?

You are required by Federal Law to keep your correct address on file or risk going out of status. I suggest you file for the change and present the corrected information.
http://www.uscis.gov/portal/site/usc...0045f3d6a1RCRD

As an international student I informed and gave my new address to my student office which follows our visa issues. More over I changed my address on my school account which international student office told me to do so just after my moving.
Do I still fill another form AR-11?
In addition to that as Long as I keep my correct address on file, can I live where ever I want?

Normally dissertation student have responsibilities at the university they attend. Are you receiving any financial aid or other payments for services - including tuition waivers?

I have no responsibility at the university. I am just doing my own research to get the degree. Beside I am not having any financial aid from university or waiver.

That being the case, I suggest you talk again to your school's DSO - not just someone in the office- to make sure your SEVIS record as well as the AR-11 is updated with your new address. Since you are likely registered for less than the full credit hour requirement, be sure you understand the time limits for which a student may take a reduced load. If you intend to use OPT, you need to discuss those requirements as well. I am afraid that you may believe that you can register for a reduced load for several semesters and end up in trouble.

Thank you for these information. From these posts I understand that as long as I inform the office and keep my address current and meet with the visa requirement from registration perspective, there is no problem for living in another state.