pralay said:
Not necessarily. Even if officer writes "AOS..." and you have non-expired H1 stamp on your passport, usage of AP does not void H1. It's true that you are an AOS adjustee, but your H1 status is still valid.
There are a bunch of memoranda that seem to indicate that if the H1 holder enters via AP and works for the petitioning employer only then he or she can extend H1 status like the H was used for entry.
However, we can argue this all we want on a message board, the only definitive answer is going to be what the consular officer thinks your status is.
Let's say he pulls your records and discovers that the same post denied your H stamp a few months ago. He's then going to be highly suspicious that you're not really in H status. You have an approved petition but no valid stamp; you therefore cannot be in H status in his mind and the H4 gets denied.
Since we're arguing a question of law, not a question of fact, you can actually appeal this decision, but it'll be lengthy and I'm not sure what kind of answer you will get. All of the memoranda on the subject date from the mid- to late 1990s and you don't have the trump card in all of this, an I-94 that states your status is H-1. Your I-94 has you as a parolee, if I recall correctly.
Again, I'm skeptical. I'd feel more comfortable if you either attempted to extend H status and got a new I-94 from USCIS reflecting the status, or went back and got a visa stamp with your wife. She may get approved - stranger things have happened, but I wouldn't put a lot of money on it.