Hi,
I have been in the US from 2005 as F1. Last year on Oct1 my status changed to H1. I have been filing the 1040NR form for the last 2 years. This year I went to a tax consultant who suggested that I should file 1040 form. Is this the right form to use? Kindly advise.

On H1-B you have not completed 183 days. So you will file nonresident tax return for 2007. In 2008 you will file resident tax return.

Your advisor is incorrect and obviously, like many people, does not really understand the international implications of the US tax law. You need to file a 1040NR.