Change of Status from B-1 to H-1

[general]

My current scenario is as follows:
* Have a 10 year Multiple entry B1/B2 Visa.
* Have been to US 4 times on B-1 visa and have been back well in time.
* Currently I am in US on B-1 Visa with I-94 valid till Dec-31-2004.
* I reached here in Oct start.
* A company named 'CompanyABC' had already filed my H-1 before I was here.
* The H-1 got approved as soon as I was here.
* The company "CompanyABC" now wants to file a change of status for me from B-1 to H-1

My question is :
1. Is this legal.
2. If legal, I know that I will be able to stay in US with the new I-94 card after my change of status to H-1. But WILL THERE BE ANY ISSUE IN GETTING THE H1-B VISA STAMPED once I move out of US and want to reenter. Will USCIS view my filing of change of status as something signalling that I wanted to stay here for long which I did not disclose while entering US
on B-1.

If somebody can provide me some concrete information, I will really appreciate.

I have to let my company know in 1 or 2 days. So if the replies can be made ASAP, I will appreciate.


Best Regards

[immihelp]

1. Yes.
2. That is subjective. It is difficult to say for sure.

[kpadmanabhuni]

You will get asked to go India

If the company is applying for B1 to H1, there is 99% chances that you will
be asked to leave the country and get stamped. You will get I94 that will expire in Dec.
If you have an approved H1 petition (then you can be treated as a potential immigrant and that is fine according to "dual intent") and have all supporting
documentation (whatever consulate asks for) like educational transcripts, evaluation report, exp letters,letter from employer,..etc then there is no reason they can simply deny it. They might check the validity of the documents and that might get delayed.