Ginnu here is what I found, read below and I have put in bold the portion that applies to my wife saying that she can enter. Let me know what you think after that. I am thinking she can enter on H1B what are your thoughts.
(d) Automatic extension of validity at ports of entry. (1) Provided
that the requirements set out in paragraph (d)(2) of this section are
fully met, the following provisions apply to nonimmigrant aliens
seeking readmission at ports of entry:
(i) The validity of an expired nonimmigrant visa issued under INA
101(a)(15) may be considered to be automatically extended to the date
of application for readmission; and
(ii) In cases where the original nonimmigrant classification of an
alien has been changed by USCIS to another nonimmigrant classification,
the validity of an expired or unexpired nonimmigrant visa may be
considered to be automatically extended to the date of application for
readmission, and the visa may be converted as necessary to that changed
classification.
(2) The provisions in paragraph (d)(1) of this section are
applicable only in the case of a nonimmigrant alien who:
(i) Is in possession of a Form I-94, Arrival-Departure Record,
endorsed by USCIS to show an unexpired period of initial admission or
extension of stay, or, in the case of a qualified F or J student or
exchange visitor or the accompanying spouse or child of such an alien,
is in possession of a current Form I-20, Certificate of Eligibility for
Nonimmigrant Student Status, or Form IAP-66, Certificate of Eligibility
for Exchange Visitor Status, issued by the school the student has been
authorized to attend by BCIS, or by the sponsor of the exchange program
in which the alien has been authorized to participate by BCIS, and
endorsed by the issuing school official or program sponsor to indicate
the period of initial admission or extension of stay authorized by BCIS;
(ii) Is applying for readmission after an absence not exceeding 30
days solely in contiguous territory, or, in the case of a student or
exchange visitor or accompanying spouse or child meeting the
stipulations of paragraph (d)(2)(i) of this section, after an absence
not exceeding 30 days in contiguous territory or adjacent islands other
than Cuba;
(iii) Has maintained and intends to resume nonimmigrant status;
(iv) Is applying for readmission within the authorized period of
initial admission or extension of stay;
[[Page 10324]]
(v) Is in possession of a valid passport;
(vi) Does not require authorization for admission under INA
212(d)(3); and
(vii) Has not applied for a new visa while abroad. (emphasis added)
3) The provisions in paragraphs (d)(1) and (d)(2) of this section
shall not apply to the nationals of countries identified as supporting
terrorism in the Department's annual report to Congress entitled
Patterns of Global Terrorism.
