H1 to L1 to H1 change of status complexity

[sap123]

I came to USA on L1A in 2006. I filed for H1B in 2008 with 2 firms to ensure my name is selcted in lottery. My name was selected from both the firms. Got my first approval on 1st Oct and 2nd approval in Jan 2009.
But due to economic conditions in US, I was not able to get job on H1B. I travelled out fo country twice , in Nov End and Mar end to retain my L1 A status. Now my question is -->
1. Am I on legal status ?
2. Will there be issues as I was staying in US "Out of Status" twice for 2 mths, if I change my status from L1 to H1.
3. If H1 is cancelled, is change of status still possible ?

[kabkaba]

If you last entered on L1 visa and your I-94 says L1, then your status is L1. If you are not working for your L1 employer, you are out of status. If I-94 has expired, you are illegally present.

H1 petition as such may not be revoked by any of your employers. But, if you apply for change of status, you need to prove that H1 employer still has a job for you.