Background: I am currently on H1B, my I140 has been approved and my I485 was pending based on which I received my EAD. On Dec'08 my I485 was denied due to USCIS error - we filed an Appeal/MTR and right now the case is with AAO. I485 status shows 'Case in appeal with AAO'. EAD is valid till Aug'10. I have just been informed that I will be laid-off effective July 10th.

Questions:
1. Can i stay unemployed (for some time) on EAD, while I look for a job?
2. My husband has an H1B - should I get on H4, or is it ok to stay on EAD?

My main cause of concern is that although my EAD is valid, my I485 is at AAO due to the MTR/Appeal filed. It is a clear case of USCIS error, so I am very hopeful that the case will be resolved. What is the law regarding being out of a job while on EAD?