h-1b denied and i-140 approved

[kunalamin]

My h-1b renewal denied on 31 jan12 and my i-485 dates became current.

my question is now what should i do?i was going to file for i-485.

i am very confuse can i go ahead and file i-485 because my current employer wants to keep me on job.

or can i file for appeal or i have to go back to home country?

Additional information

employment based i-485,

i-140 approved

priority date dec 3rd 2008 EB 2

h-1b renewal denied ( first time approved oct 2008 to oct 2011)

i also heard that person can file new h-1b with approved i-140.Do i have to file h-1b in order to

stay in status. can i file for i-485 staying in usa with denial h-1b.