H1-B expire and DV2000

Here is one of my friends situation.

 His H1B expired july31 2000 and he is waiting to get I-140 (EB2) approved by TEXAS with in two months. He also received the DV for this year (oct 1 2000) lottery. CAn he still file for DV based 485 to the local INS? Since he is out of status but staying in the USA less than 180 days.

 Can he file DV based 485 now ( oct 1 ) and then EB based 485 later?