I was in the same situation as you. I asked questions about the H1b out of status to several attorneys at that time, the answer is this is a gray area, the law does not give a black/white answer. I freaked out when I heard I was out to status, and that time was 2002 after 911. INS was claiming Zero Tolerance, meaning not even a day of out of status is allowed. But in reality, the INS officers deal with it on a case by case basis, if your situation is reasonable,like change a job after a couple of months. So my H1 "transfer", actually no such thing as Transfer, it is new petition anyway, got approved with no problem. You just go ahead do what you suppose to do, quickly. Ask some attorneys for second opinion. Like other people said, as long as you are not out of status for 180 days, you should be fine.