1. He appears as he STARTS casting, allowing me to hit him with my readied action.
2. He appears as he FINISHES casting, so I have no chance of disrupting his casting.
3. He appears as he STARTS casting, but I can't get a MM spell off at him, unless it was quickened or something. Should'a used a bow.
4. He appears as he FINISHES casting, so even a bow wouldn't have helped.
5. He appears as he finishes casting, so even a bow wouldn't have helped, HOWEVER, you are allowed a heroic (30-40+ DC) listen check to hear his speaking words 50 feet up, then a semi-heroic (20-30+ DC) spot check to target his invisible "shape" (and still have 50% miss chance due to concealment). None of that's in the rules, really, it's just the DM being "nice".
As a DM, I was uncomfortable with basic (non-improved) invisibility trumping the "ready" action. Considering that the "ready" action is now almost the only way you can disrupt a caster, I was concerned about balance. However, I was a player at the time, and my DM decided to go with option #5.
I have done search for this on the board, but the only thing that comes close are discussions about readying vs stilled and quicked spells:
What do people here think?
Thelbar