Permanent resident in 2010 married a person with a student VISA. He is a Spanish citizen. He has income in Spain and files a Spanish tax return. CAn we file a W-7, and file a joint tax return. If so do we have to report the Spanish wages in the 1040. They were earned prior to the marriage.

First, if you want to file jointly, you need to add a statement that you both choose to treat the non-resident alien student as a resident alien. You then need to report his worldwide income. If the income in Spain as earned before coming to the US, you might be able to exclude it from being taxed on form 2555. Or you might take a credit for foreign paid taxes on form 1116.
If your husband doesn't have an ITIN, fill out form W7 and send your return together with it to the address in the instructions of form W7.

If you do not want to report his foreign income, you need to file separately and your husband would file as a non-resident alien (if he is in the US less than 5 years on thestudent visa).