My wife and I moved 280 miles from Atwater, CA to Los Angeles, CA. We gave a thirty day notice and a week before our thirty days were up, the landlord began entering the home without our permission and started cleaning and repairing the home. I received a call from my neighbor who saw them. When I called to find out they said that they were taking the house back a week earlier so they could rent it out. I told them that we had not finished cleaning or preparing the house for the new tenant but they did not care. This was in October. We received a letter from them the other day stating that they charged us for carpets (I have emails asking them to change the worn and damaged carpet while we lived there but they said they could not afford it.) Many things that were damaged when we moved in have now been replaced with our deposit including toilets which I found absolutely obsurd. There was nothing wrong with the toilets other than they were old. Can I still file a lawsuit since it's been since October 2007?

Yes of course you can still file a law suit and need to.

The lease probably allows them to enter the premises to do repairs. However, they cannot take possession earlier than your lease termination date. Did you not do a walk through before you moved out? Do you have proof that the repairs not necessary or that were pre-exisiting items?

If they took possession early then they should refund the pro-rated rental.