"My employer is willing to issue me pay checks."
If you mean that they give you a check and you give it back (what this sounded like to me), thats illegal.
If you mean they keep paying you, your H1B is not terminated, you are in status, and you can apply for COS. Also, make sure your F1 status can start immediately. You can't ask for COS to F-1 for Fall, for example. That would be denied because you can't start in F-1 status more than 30 days before the program starts.
"Everybody know.. once COS F-1 is in the process, You F**king can't leave the country. " This is America. You can leave any time you want. There is no problem with leaving while COS is pending. I did that twice. The COS is of course abandoned and you have to get a new visa stamp to come back, but thats not a big deal.