International travel on H1B

[rvedaram]

I have recently renewed by H1B. I am yet to get it stamped. I am planning to visit Rome, Italy for a holiday and get my H1B Visa stamped there. Two questions
1) Italy consulate said that I need a valid US visa to apply for a Schegen visa. Is my approval notice considered to be valid, or do I need a stamping?

2) Can I get my H1B stamped in Italy?

Thanks
Radhika