I was laid off at client site on Oct 1, 2010.
My extension H1B was filed by my 2nd employer (consulting company) on April 29, 2010. I got RFE in June and my employer responded in June 30 with docs. Since June 30, my status still shows "Pending".
My first H1B (2007 -2010) filed by 1st employer was valid till September 29, 2010.

Am I still "in Status? My employer gave me 2 options: either go to India OR change to F1 visa status.
I want to stay back and look for jobs here. Do I apply for change of status to B2 or F1 and if I should apply before receiving any decision on my pending H1B? Will I have issue going back to H1B once I find job? Legally how many days can I stay in US? Will it be a problem if h1B is revoked? Is there a grace period to stay in US?