The I94 is the most important document that is used in determining the status of any alien who enters US on a non-immigrant visa.
No matter what your other papers say, you are allowed to stay only for the duration mentioned on your I94 and if you live without a proper I94 for more than 120 days, then you are considered to be out of status.
The I94 will be based on the document you show at the POE. If some one used his AP, then he is considered to be in AOS status and not a non-immigrant anymore.
In this case, since our friend used his/her AP, all he has to do is to get out of the country and enter back with H1 papers provided there is a valid visa stamping on the passport. If there is no valid stamping on the passport, then an appointment with the consulate is required.
Please consult an attorney to verify the facts just to make sure.