I'm not a lawyer - but the following is based on my experience: The fact that a cancellation has been sent could be problematic. You may already be out of status, is my guess. HOWEVER, assuming that's not the case, and you're still in H1B status and you haven't reached the end of your six year limit, I don't see why you can't transfer. Also you can start work with the new company as soon as the transfer application has been filed (H1B portability provision). If your transfer application is then denied, well, I guess then you're out of status and you would have to leave - or figure something else out quickly. Assuming the transfer is approved, you don't need a new stamp in your passport unless you leave the US - then you will need to get the stamp at a US consulate abroad in order to return in H1B status. You'll need the transfer Notice of Approval to do that. Opinions vary - seems the best is to get this done at a consulate in your home country, though I know people who've travelled to Mexico or Canada and got the stamp there. Again, no need to do so if you're not planning on leaving and re-entering the US while in H1B status. I do not believe you can get the stamp in your passport domestically any longer - you used to be able to send it away to St Louis but I believe this program has been terminated. This is just my layman's understanding, for what it's worth. Best would be to talk to a lawyer.
