I have done paid consultation with murthy office on this matter. As per them, one can continue to work on H1B even after returning on AP. One can also do H1B transfer to a different employer. Ofcourse, your exiting 797 should be valid while you are doing this. One can find this surprising, even after you "use EAD" you can ask for reinstatement of H1B status by filing H1 extension but one has to leave the country and apply for H1B stamp and enter on H1 to reinstate H1B status in this case.
Last edited by casinoroyale; 01-07-2008 at 11:46 AM.