Lawyers please reply..am i in status & can stay in country

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Registered Users (C)
I-94 stamping in pass port and H1b expired but applied for H1B ext long before they expired (waiting for approval from INS) and also got a letter from INS that INS recieved my H1b ext application with ND before H1b expried, can a person stay in country with no problem.
 
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