From H-1B to TN status? Any problem?

Originally I worked for current employer with TN-status. The old TN-status with current firm ended on 9/18/2008. So my current firm filed another one -year TN-status for me in order to cover the short gap period between old TN status (09/18/2008) and H-1B ( the effective date was 10/1/08 ). That means I have both TN Status and H-1B now.

Now I just landed a new job and the new employer only considers the TN-status and doesn't want to do H-1B transfer.

Is there any problem for me change the status from H-1B to TN status? I haven't filed any green card application and had worked in US about 4 years with TN status before the H-1B took effective.

Thanks in advance for any suggestion,