Sorry for the delay. I just ask that if it is bad news that you not shoot the messenger. Shooting the messenger is either leaving a negative rating (usually reserved for rude or unprofessional experts) or not leaving a positive rating at all.
Luckily, I have good news for you. There was a short period of time a few years ago that USCIS was not processing Adjustment of Status cases of immediate relatives of U.S. Citizens that entered on an ESTA, but some U.S. Citizens does USCIS and won and USCIS began processing those cases again. So it is not a problem for her to do Adjustment of Status in the U.S. She does NOT have to leave and in fact should not leave until she has an approved I-131 Advance Parole to allow travel.
You will need to file an adjustment package. This includes the following forms: I-130 (Petition for family member), I-130A, I-485 (application for Lawful Permanent Residency), I-765 (Application for work permit), I-131 (Application for Advance Parole), I-693 (Medical exam that a certified doctor must fill out), and I-864 (Affidavit of support). You will need to file each form with supporting evidence and appropriate filing fees. You can find these forms at www.uscis.gov/forms.
The supporting evidence that you would file would be birth certificates, marriage certificate, divorce certificates if either of you have been married previously, proof of your U.S. Citizenship, proof of your spouse's legal entry into the U.S., and financial documents to prove your income over the last year at least.
In about 3 to 5 months after filing, the work permit and Advance Parole (travel permit) should be issued. About 5 to 7 months after filing the interview should be scheduled (though now it is taking longer, so maybe closer to 7 to 9 months). If all goes well, a few weeks later the U.S. Lawful Permanent Residency card (green card) should come in the mail.
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