Hi Thanks for the reply.
I did discuss my overstay fully with the staff at the embassy at the time of applying for my holiday visa (in 2005) and they stated that a waiver could be granted for my overstay but never asked for any further information/forms to be filed or extra money. The application was referred to back to the States for approval, which was granted. It wasn't until I started looking into gaining LPR that I discovered thre is a form to apply for a waiver of ineligibility.
We have considered waiting till the end of the year (I left the US after my overstay on 26th Dec 2001) before we move back, however, my husband has a job waiting for him and needs to get back sooner rather than later and we are not prepared to separate the family.
I will see what happens in the interview as if they need me to file I 601 I'm sure they will let me know. I just wondered if it is something they always request or if there is a degree of discretion (as there seems to have been for the holiday visa). I'll just have to make sure I'm prepared and have the extra money with me!

Many thanks

Colette