H1 extension/renewal

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Hi,
My wife has a H1 visa till Sep 2011. Currently I am Green card holder and applied for citizenship , waiting for the interview.
Once I get from citizenship I can apply for her GC , petition - I-130 - family based green card through spouse.
since the timing of both are very close we are worried.
My question is do we still renew her H1 visa?
Does applying I-130 keep her in status?
Should I apply her I-130 based on my green card.?
Thanks
KK