Hi, I am an Indian citizen who came to the US in December 2008 on an F-1 to do an MBA. I was previously working with a publicly-listed telecom equipment company in India which has a sales office in the US. In April 2010, I joined the company again on a CPT after getting an EAD. After completing my MBA in December 2010, my employer filed for an H-1B and it was approved by the USCIS in January 2011. The documentation and processing was done via a Virginia-based law firm specializing in Immigration law.

I now need to travel outside the US for work (Brazil, Mexico and Guatemala). But if I have to enter the country again, then I need the visa stamp. My questions are:
1. Do I need to go to India first and get the visa stamp in my home country (I have heard from friends that the current processing times in India for H1B are over 6 weeks).
2. Can the officials actually deny / reject my application even if my change of status is approved?
3. Should I go to any other third country to get the visa stamp?
4. If yes, what are the best options, Canada, Bahamas, Mexico, any other?

You will need to get the H-1B visa issued in your passport for re-entry as an H-1B.

Visa issuance is never guaranteed, but if you are working as an H-1B, got the F-1 visa previously, don't have any criminal history (anywhere) and have not otherwise violated the terms of your visas; you are likely to get the visa. The most common delay is the security clearance. This happens if you are on a security watch list or your name is the same or similar to someone on the watch list.

You can apply at a different consulate, but need to check to see which consulates will accept third-country nationals (TCN). There will be a few more that will accept you as you have a U.S. degree and your employer is well known. You will want to see if you can apply at a post in the countries you are visiting. It's a good idea to discuss with the immigration attorney for the company, or find an experienced consular processing attorney. You can find good attorneys through AILA or your state bar if they have an immigration interest section.

I hope this was responsive to your inquiry. Good luck.