Status change from TN to H1B

I am Canadian citizen working in USA since january 2009 on TN visa and this visa is good untill 2012. Recently I got approved for H1b visa..as my employer wants to apply gc for me after h1b stamping. I need to get it stamped sometime after Oct. 01. I was thinking of Nuevo Laredo but looks like I cannot do it there as my nationality is Indian.

I have to go to Canada and get it stamp in the embassy or I can do it in POE. I am planning to go to India end of october. Wondering what would work best Canada or India.
If my H1B stamping is rejected , am I still allow to work on TN. Has anybody have similar situation like me.

Suggestions are appreciated.

Cdn citizens do not need or get any Consular stamping (regardless of country of Birth) for H1.

Did your H1 approval (I-797) come with an I-94 attached?

If so, you will automatically convert to H1 on Oct 01. Simply attach your new I-94 to your current TN I-94.

If it did not, you remain in TN until it is convenient for you to go to the border,sometime after October 1, and merely enter using the I-797.

Directions about consular appointments, etc do not apply to you.

And there is no cause for delay in starting your GC process.

Did your H1 approval (I-797) come with an I-94 attached?

If so, you will automatically convert to H1 on Oct 01. Simply attach your new I-94 to your current TN I-94.

I have one question about validity of H1B/H4. My family moved to California in July 2009, my husband got TN, me and kids TD. Upon our arrival his company applied for change of our status (H-1B petition, premium processing) and we got our I-797A, Notice of Action in September 2009. Petition includes I-94 for whole family for H1B/H4 Class, but validity date is for 3 years starting Oct 1/2009 - I expected to see 6 years validity. Is this common after the change of status to get H1B/H4 valid for 3 years instead of 6?

I have one more question about next steps - when is it possible to apply for GC, and at what point will I be allowed to work? I have tried to find this info, but failed so far. Thanks!

H1's are only valid 3 years at a time. You are now in H1/H4 status.

Your husbands employer needs to go thru the steps for GC, starting with PERM and then I-140. Once I-140 is approved and the quota for GC in his category is 'currnet' you can all file I-485's together. At that time you can apply for work authorization.