I understand my question is long but I have tried to explain everything 
in detail so my case makes sense and doesn't give you a headache :)

Good Afternoon,
 I entered into United States on 15th August 2001 as an F-1 Student. I 
went back to visit my family on May in summer 03 and returned to United 
States on September 03. I was enrolled in my University till Autumn 03 
and wasn't able to continue my education for various reasons and had to 
discontinue. I was out of status from Winter/January 04 till I returned 
to my country in October 06. My VISA expired on 30 April 05, I 
Overstated more than a year. During my stay I was engaged, my fiancé had been 
really helpful in my tough times and stuck with me through it. She lived 
in Michigan and I was in Ohio.

Now the troubling part. In March 06 I was visiting my fiancé in 
Michigan and was traveling from Columbus Ohio on Greyhound since my license 
was expired and couldn't drive. At the Detroit Bus Station I was 
approached by Border Patrol Agents and was asked to show my documents, I wasn't 
carrying them they were in Columbus. They took me to the station and 
checked if I were in United States legally. Everything came out good; I 
had good Immigration History, no criminal record. However when agents 
called schools admission office they told agents I was not enrolled in 
school from Jan 04 to Marc 06 (then present time). I was detained at 
Wayne County Jail and was told to appear in front of a judge. I had a court 
date after a week. I told the Judge I was still in school because I 
wanted to get of Jail ASAP, Judge said I had good immigration history and 
no criminal record so she asked me to go to school and bring all 
official transcripts and all supporting documents to the assigned immigration 
officer so my case could be dismissed, I was released on Bond on March 
26 006. Since I wasn't in school from Jan 04 to March 06 (then present 
time) I couldn't bring in my school transcripts to prove I was still in 
status. After about one and half month on May 14 2006 I received a 
letter from INS to appear in court for my case on June 14 2006. Which I 
failed to do so since I didn't have any supportive argument and documents, 
and the decision was ruled against me "ORDER: THE RESPONDENT SHALL BE 
REMOVED TO [HIS COUNTRY] OR IN THE ALTERNATIVE TO ON THE CHARGES(S) 
CONTAINED IN THE NOTICE TO APPEAR". Charges were that I was out of status 
and not enrolled in school from Jan 04 and overstayed more than a year.

I started saving money for my ticket so I could go home and don't see 
Jail again. I left United States on October 07 2006 and was finger 
printed as well at JFK. Immigration Officers didn't ask anything at the 
airport if I had any arrest warrant (if I had one) or anything about the 
case, they finger printed and stamped my passport.

Now the question:
I want to be with my fiancé, get married, start a family and a new 
life. I do not now what procedure or steps should I take! I am thinking of 
applying as an immigrant K1 fiancé VISA. But before that what steps 
should I take so that my previous case doesn't affect fiancé VISA 
application or if there is/are any other way/s that I should approach?

I understand I am taking alot of your time I would really appreciate if 
you could help/advise me in this matter! Thanyou.

Better have your fiancee contact a good immigration attorney. 
Hypothetically, it is very hard to be admitted legally after being
here illegally, and I would think failure to report; jumping bond; and
little things like that are not going to bode well for you.

I am not saying you can't do it, since I am not an immigration attorney.

I am saying you have done so many things wrong, you absolutely can't
afford any more mistakes to go with all the mistakes you have made so
far.

So, stop trying to do things via cheap advice on a URL which
specifically warns you that you should not expect legal advice here.

mola_jutt

I have no sympathy for your dilemma. The United States invited you to
stay in their country. You as a visitor chose to break the rules.
Before your visa expired you should have returned to your country.
Many many immigrants to North America go through the correct process
and obey the rules. You should be no different.

Mongolia

BTW Irlandes advice is excellent and you should pay attention to it.

Why not bring you fiancé back to your country.

BTW, it was incredibly, highly, imnmensely stupid to lie to the judge
about a fact that can be easily  disproven.

@ irlandes

I really appriciate your help, i am planning on hiring an attorney but
before that i am trying to gather anything and everything regarding my
case. I have talked to few attorneys everyone has different way to
approach the case. I am only asking for information. I am not taking
it as a leagal advice, i just need information so when i talk to
attorneys they don't try longer and harder methonds.
Thank you for your advice!

@ mongolia

Thank you as well! :)

@ nelson

I am also considering that option, our first preference is that we
stay in states but if it doesn't happen, yes she is comming here! Also
i understand i made a big mistake i can't make any excuse about it.
Thank you for your advice!

Thank you everyone and if anyone else more information i would really appriciate it!

Mola_jutt

I appreciate you getting back to us especially as  my comment was
blunt (though I think fair).)  We all make mistakes of course.

I hope everything works out for you and wish you best of luck for the future.

Mongolia