Hi I am on L1 visa... how should I file tax returns.. can I use turbotax or any other available tax software or should I file hard copy in IRS office.

When did you enter the U.S. Are you married? Your U.S. Tax Return: The U.S. Visas (http://taxipay.blogspot.com/2008/08/us-visas.html)

I entered US in Jan 2010... No I am not married...

You will file dual status tax return, which can not be efiled.
You can deduct moving expenses using Form 3903. Your U.S. Tax Return: Moving Expenses (http://taxipay.blogspot.com/2008/02/moving-expenses.html)

Agreed; dual-status return is required.