L1B Extension Denied and H1B in process

My I-94(L1B Visa) is expiring on 15-Sept-2012. We applied for L1B-Extension and H1B visa. Instead of making the H1B visa as premium processing, they have made the L1B-Extension as premium processing. USCIS has repsonded with a denial on the L1B-Extension. My wife is also 31 weeks pregenant. If the H1B visa is now changed to premium mode, 

1. Can I stay without leaving the country with the approved H1B visa petition, stop working on L1B from 15-Sept-2012 and continue the work from 1-Oct-2012 with H1B visa.

2. Since my wife is 31 weeks pregenant, is there any medical clause by which the extension can be made?

3. Is there any option for reapplying for the L1B-Extension?

My View :

  1. You can stay in US if you got approved petition as 10 day in advance you can travel from india to start ur job from 1st oct and in ur case u can easily get grace of 15 days as u are already in US

  2. I don’t think there is any medical clause on basis of that extension can be made

  3. insted of L1B extension better concentrate on H1b Premiun, these days there are lot if rejection in L1B and urs is extension that is more difficult

How much time was taken for L1B extn processing (premium) ?