H-4 to H-1, H-4 expired, H-4 renewal pending, with EAD

[gcwait_04_2006]

Hi,
My wife's situation is little complicated.. Members please help and suggest what can be done if there is any violation of status.

On H-4 status since Jun-2005
Apr Applied for H-1 visa
Jul - 17 Applied for EAD/485 (Attahced pending H-1 receipt notice)
Jul - 18 Applied for H-4 extention (H-4 expires Sep-30-2007)
Jul-29 H-1 Approval (With I-94 valid from Oct-1-2007)
Aug - 29 H-4 rejected due to wrong fee. There was a cover letter mentioning
that re-submit with correct fee and attach that letter for faster processing.
Sep-11 485 receipt date and Pending.
Sep - 13 H-4 reapplied (With out any changes to application i.e., no mention of H-1 approval & 485 application) with correct fee.
Sep - 25 EAD approved
Oct 1st week received SSN based on EAD

her H-4 is still pending after re-application (from Sep-13)
and my wife is not working on H-1 due to family constraints.

1) Whether my wife in case of any illegal state?
2) Can her H-1 employer help any way getting her to right status?
3) If her H-4 approves, will every thing will be cleared? (It is pending from Sep-13)
4) Do I need to take any action to inform USCIS.



I truely thank you for Knowledgeable members sharing their experience and thoughts.
(I posted the same to another sub-thread which I can not locate any more. Pl. donot consider it as spam.)