L1 to H4?

[bbalasub]

Hello,

My fiancee has a valid L1 visa which she has not used. I obtained my H1B about a month ago. Would it be best if

1. she comes to the US on L1 and switches to H4? If so, does she have to go out of the country to make this switch?

or...

2. she reappears for a H4 interview at the US consulate?

Thanks!