H1B, H4 Visa

I came to US for MBA on F1 in 2007 and I got my first H1B approval in oct 2009..with I-94 attached to it and than had to transfer to a new employer in Oct 2010.... there was a 45 days of employement gap between my transfer so the attorney filed a visa petition for me to avoid any denials (I dont understand) which also required me to go back to India and get a visa stamping done or I will not be able to work for the petitioner. The ISSUE is i just realised this problem today April 10 2013. yes, TODAY ! I have been out of status since Oct 2010 (That is when they filed my H1 Petition for transfer) My employer did tell me in 2011 to go to india and get it stamped but he did not tell me that I MUST go to india or otherwise it is not Valid.
I know it is very complicated situation to even explain it entirely... but has anyone even been in this situation or something like this.
I met an Immigration attorney for consultation and he said I have been out of status since oct 2010 and unlawful since Oct 2012 (based on my original H1B which had I94 to it and was valid from Oct 2009-Oct 2012) but I can still go to Inidia and try stamping (it is unlawful but nothing is illegal)

Can anyone please help. I am lost !