Hello, I am a US citizen who recently married to a J-1 visa holder.
She is currently employeed and resides in the U.S.   We are ready to file 
for immigration and Adjustment of Status (I-485), since she has recently 
received a waiver of the 2-year residency requirement. (yeah!)  
We are concerned that filing for Adjustment of Status will immediately 
terminate her J-1 status, therefore, making her ineligible to continue 
working in her job, until an EAD (I-765) is issued.

Looking at processing times indicates that she may be in "limbo" for 
approximately 6 weeks, until the EAD arrives.

On another scenario, if she waits until her project is over (end of
August) before we file the 485, then she will be out-of-status and the
Adjustment of Status may get more complicated.
    
 The question(s) is:  
 
 1) When should we file?
 2) Can she continue in her job with a pending EAD and 485?
 
 
 
 Please HELP!!

Have you tried the site of the US Immigration and Citizenship Service:

USCIS

Search on the above initials and you will get the site,  Ample FAQs
and search capacity.

Good luck.