I have a friend from Poland that is trying to stay in the US past the
one extension she was granted on her B1 Visa. Her B1 Visa expired on
10-17-05, but she received a 6 month extension that began on
05-02-05 and expired on 11-02-05.

What does she need to do to remain in the US legally?

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Full details are below along with the true specifics that I am looking
for. Please read this information and take it into consideration while
answering this question. One additional point. I am not looking for a
bunch of links to other websites. I need answers from someone who is
quite knowledgeable about this topic. The amount of immigration
information available on the web is immense, but something more along
the nature of guidance is needed in this case. Accurate information is
good, but this is a problem in need of a solution.

I will of course ask for clarification on your response if I need it
*before* I post my rating.

Thanks!
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- She had a J1 Visa with an issue date of April 27, 2004 with an
expiration date of Sept 10, 2004.
- She originally entered the US for the 1st time on May 10, 2004 on this J1 Visa.
- She stayed until Sept 5, 2004 on this J1 Visa.

- She then obtained a B1 Visa with an issue date of Oct 18, 2004 and
an expiration date of Oct 17, 2005.
- She entered the US for the 2nd time on November 3, 2004.
- At the time of the 2nd entry, she was informed that she could stay
for 6 months in the US, until May 2, 2005.
- Before this May 2nd date, she applied for an extension so she could
stay an additional 6 months.
- She received this 6 month extension, but the time period approved
was for May 1, 2005 until Nov 1, 2005. The postmark of the letter she
received that informed her of this extension was Nov 2, 2005, one day
after the end of her 6 month extension expired.
- When she applied for the extension, she was under the impression
that any extension of time would start from the expiration date of her
B1 Visa, which was Oct 17, 2005, NOT the end of her initial 6 month
stay, which was May 2, 2005.
- After receiving the authorization of her 6 month extension, and
seeing that it had already expired, she wrote a letter requesting the
6 month extension be applied from the expiration date of her B1 Visa.

- She called the USCIS office in Vermont on 1/4/05 and the person she
spoke with there said that only 1 extension is granted and that since
the extension she received expired on Nov 2, 2005 she was to have
understood that she had a maximum of 180 days from this day to remain
in the US legally.
- The USCIS representative also stated that it was advisable for her
not to stay the full 180 day limit if she planned on returning to the
US.

My friend would like to remain in the US legally and has the following questions:
1) Her B1 Visa expired on October 17, 2005, is she still here legally?
If so, at what point does she become illegal?
2) What options does she have right now to remain in the US?
3) Can she extend her B1 Visa again or change to another type of Visa,
such as a student visa? (She has finished 2 years of university in
Poland and would like to finish her education in the US)
4) An employer is willing to sponser her right now, can she begin the
application process for an H1B Visa or a Greencard? If so, which one
is preferable to apply for and why?

When you say "..visa expired" I am assuming that you are referring to the 
"Expiry Date" in the Visa on the passport issued by the US Embassy. This date
does not mean that a person can stay in the US until that date. The Expiry date 
only signifies the last date by which you can "enter" the US. The last date
until which you can remain legally in the US is the date that is on the I-94 
(Arrival -Departure Record). On the "extension" that your friend received look
for "Duration of Status". Again Visa "Expiry date" does not grant you permission 
to stay, it is the "duration of status" that does.

http://www.foreignborn.com/visas_imm/entering_us/9lengthofstay.htm

To answer your questions:
1. Depends on the I-94 "D/S" date. Staying beyond that date becomes illegal.
Once you have been out-of-status it becomes non-trivial. Better to consult an
immigration attorney.

2. One can apply for admission to a university/college and get an I-20 once
you get admitted. This is issued by the univ./college. Pre 9/11, you could apply 
for a change of status. Now you need to leave the country, visit the US consulate 
to get a fresh VISA and reenter as a student to be a legal resident. 

3. Dont really know. 
4. H1B is a "skilled worker" category. You have to prove that your friend's 
skill is in short-supply in the US. The number of fresh H1Bs that can be issued 
for 2006 has been met and no more will be issued until Oct-2006. An employer 
sponsored green card requires that you first be legally working for the employer,
then again prove that there is a shortage of US workers. This process is better
done with the help of an immigration attorney.

Hope that helps. Good luck.

Below are 2 links that explain the few things that I have tried to do:

http://travel.state.gov/visa/temp/info/info_1298.html
http://www.immihelp.com/visas/extend.html