Hi, my husband is OPT from 01-10 2007, and H1B from 10-12. I'm F2 from 01-02 2007, F1:02-12,2007. Can we MFJ and have tax credit for my college tuition?(if we meet the income test) . Which form should we use then.

You can file as MFJ if you wait for about 6 months till you complete SPT in 2008. You pay FICA taxes in 2007, and won't get any treaty benefits. In 2008 also, you must pay FICA taxes.

Other choice is both of you file separate return as nonresident. You will get exemption deductions and deduction as per tax treaty, and itemized deductions (if you are not from India).

I saw there is a "first year choice" on Internal Revenue Service I think my husband can apply

Yes, you can file as Married Filing Jointly as First Year Choice when you complete SPT test.