I am a Canadian Citizen came from Canada to VA state for a short term 2 months contract which was further extended to 6 months, in 2006

I was paid hourly rate, and my pay was on 1099-misc form

Question 1) Can I claim per diem as when I asked from my employer, he told me that you can do so in your tax return. I didn't save my receipts of meal and lodging

Question 2) Can I claim my traveling expanses for moving back and forth from Canada, as my principal home was in canada

Question 3) I worked 20 days in year 2005, but got paid for that in 2006, should I file those days in 2005 or in 2006?

1) Yes, you CAN claim per diem.

2) Yes, In my opinion!

3) In 2006.

You really should get some professional help on this situation. Given that you were an independent contractor, depending on the facts of your situation you might not even need to be paying taxes in the US at all (because of the treaty). Either go and research the treaty yourself or else pay for professional assistance.

I agree with TaxSearcher. Professional tax help is probably your best bet!