Hi gc750,
Sorry I did not check my messages. The consulate took my passport on the day of interview itself. I waited for about 3.5 weeks and when I wrote to them to get my passport back (so I could travel on AP), they replied that the H1B visa had been approved and the passport would arrive in 3or4 days.

According to my lawyer, you can travel back on AP and allow the admin processing to continue. When the consulate asks for your passport, you can either abandon the H1B application or you can go back to get the stamping. I believe that if you abandon the application, you cannot use H1B, until you go back and get it stamped. Moreover when they took your H1B application, did the consulate write or stamp anything in your passport that says "Application Received". If so, some one in this forum said that this "Application Received" stamp would be just a nuisance -- every time when a visa officer asks you about it at the Port of Entry, you have explain the story.
Good Luck,
Srikanth.

Did you ever get the reply back from consulate if your visa was approved and did they ask you to send the PPT for stamping. Please let me know if that worked out.

I am stuck in the same position. Went for visa stamping and now they have put me on hold for additional admin processing. I do have a valid AP. I am planning on travelling back to USA on my AP and when the consulate sends me mail to send the ppt I am planning to travel back and get the stamping done. But was wondering if my earlier travel on AP is going to abandone the H1 stamping application.