Moving from L1 to H1 Visa within US

[write2abi]

Hi, I have a valid H1 Petition, valid till Sep 2009. When i went for H1 stamping in India during Nov-2006, it was not a successful one. Meanwhile employer has dropped the offer provided to me. Now im in US in L1 Visa, and will be here for some more months. Now,
1) can i approach some company to consider my valid h1 petition, and seek an offer.
2) Is it possible to transfer the H1 petition provided by other employer to be transferred to a new employer, without going for stamping ?
3) If yes, what are the documents that the new employer will seek from me ?
4) My current employer who brought be in L1, is paying me as daily allowance and i dont have a pay stub here in US. But i get paid in India along with daily allowance here.
5) As i understand if i leaveout of US, i need to get H1 stamped to enter.
6) If i stay in US for some more time, can my petition be extended beyond sep-2009.
Please comment and help me to understand what i can do now.
thanks,
Gayathri.

[txh1b]

1. Yes
2. yes
3. Nothing unusual that you cant provide. A copy of previous H1b approval to prove that you were cap counted is needed.
4. I think it is illegal. On L1, you need to get paid a salary and not allowance like B1/B2 people. Your employer may be violating some laws.
5. Without L1 paystubs, a COS to H1b is not possible while in US. You have to get a stamp. Why dont you transfer your H1b to another employer (if your prior rejection was due to the employer)? Also spend time researching on laws regarding pay on L1.
6. Extension has nothing to do here. If you have not used the total years, H1b can be extended.