Seems like everyones having the same problem this year. You can file an MTR or leave and get the visa stamped. In any case, it will take about 2 mths to get the 1-94 if they agree to change status from here.
Answers
This might not be the answer to your post but I just had a thought - Did those Kaplan guys process your paperwork for an I-20 correctly and in a timely manner? Coz this letter from INS means that you were (atleast in their records) not in any status (incl I-20) since July 31st.
Also...
I was recently approved for an h1b however the INS sent out a letter stating that they had not approved the change of status request as they think i would be out of status from july 31st- oct 1st. They have asked me to go to my home country and stamp the visa and then come back and start work...
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