ADPCIT:
It's a bit early to decide how your wife should file, as she may get another job before the end of the year. The fact that prbably had income in 2005 (you did not say
when she got laid off) will probably dictate she file a normal tax return as a resident alien. Since you will probably want to file jointly, that means you would file as a resident alien as well.
Suggest you review IRS Pub 519 from
www.irs.gov for details.