Following is an example from above referring memo.
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Example 4: An alien is admitted as a nonimmigrant until January 10, 2011. On March 15, 2009, DHS places the alien in removal proceedings, claiming that the alien had violated a condition of admission.
Because the alien was in "violation of status" (eg "violated a condition of admission", like H-1B does not work for his sponsor employer), it causes him out of staus, and brings him "in removal proceedings". The above alien is not "legal to stay in US" as you said.
-I think "violated a condition of admission" means "entered US without inspection, i.e. illegally entered US" and this should be different from "violation of status" as you descibed here. Otherwise, it is difficult to understand 245(k).
Admission = permission to enter US.
See this CBP website:
http://www.cbp.gov/xp/cgov/travel/id_visa/legally_admitted_to_the_u_s.xml
