I don't know who made up the rules for reported speech, but they are much more restrictive than the rules of grammar. If you're teaching these people how to pass important tests, better stick with the rules and keep it as simple as possible. kenny1999 he said "we were watching TV when she came" he said (that) they were watching TV when she came he said (that) they had been watching TV when she had come According to my ear, there's no problem with "they had been watching TV," but "when she had come" doesn't work here.
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kenny1999he said "we were watching TV when she came"
he said (that) they were watching TV when she came
he