L1 to H1 transfer

[swamygs2]

Hi ..
I am currently working on L1 visa which is valid till sep 2008.
My company has decided to apply for I94 extension sometime in April 2008.

Meanwhile I want apply for H1 . Will it going to be a problem?
1. If I get H1 petition approved and I apply for I94 extenstion on my current L1 at the same time.
2. If I get H1 petition approved but If want to continue my job on L1 visa with current company...

Thanks
Swamy