A group of Hispanic illegal immigrants sued seven state colleges and universities yesterday in federal court, claiming the schools denied them admission because of their immigration status. The lawsuit . . . says the schools' presidents and rectors are following ill-conceived legal advice from state Attorney General Jerry W. Gilgore, who last fall issued an opinion recommending that all Virginia colleges deny admission to illegal immigrants and suggeting that admissions officers report potentially illegal applicants to federal authorities. . . Andres Tobar, co-chairman of the Immigrant Legal Rights Coalition, said Mr. Kilgore's policy punishes hundreds of high school students whose...