I am in the US on an H1-b visa (which is valid until October 2010). I am planning to go back to school in August 2010 on an F1 visa and I will go back to India to get my F1 visa stamped. Meanwhile, I am returning to India in June and continuing to work for my employer from India (As if I were on h1b) through June and July.

1) What is the point where the H1 ends and F1 starts, i.e. should I have terminated employment by the time I appear for F1 interview? Or should I have terminated it before the start date of my F1-visa? Basically what is the latest date i can continue working before I transition to F1.

2)Is there any additional paperwork I need to do for the above?