Charged-Off Limits in Texas

[Jackdan101]

What is the name of your state (only U.S. law)? TX
I recently pulled up my credit report to see where we stand based on this fluctuating economy and the possibility that we may be needing to buy a home in the next year or so. On the report I have an account listed as charged-off and this is what the details show

Date Opened: 07/2003 Date of Status: 07/2007 Reported Since: 03/2005 Last Reported Date: 07/2007

Account History:
Charge Off as of Feb 2007 to Jul 2007, Dec 2006, Nov 2006, Sep 2006, Jun 2006, May 2006, Feb 2006, Dec 2005, Oct 2005, Aug 2005, Jun 2005, Apr 2005, Mar 2005.

My question is can they legally they keep adding dates to the account history on the charge off date as they sell the account to different collectors.

Also how long will this stay on my credit report if 1. I do nothing or 2. If I try and settle? I'm getting conflicting advice that says if I do nothing it will drop off in 1 year or 2 but if I try and settle the 7 year clock will be reset and this will be on there for another 7 years.

The collectors have this note; Collection as of Dec 2007 to Oct 2008.

Can both the original creditor and collection agency list for the same debt?
Is there a statue of limitations on charge-offs in TX?

Thanks a bunch