I am on H1 and have been in the USA for most part of 2007 (334 days). What is my resident status? Am I a Resident Alien or a non-resident Alien? Also what is the status of my wife and kid?

Thanks

You can file resident tax return as Married Filing Jointly. You will get standard deduction of $10,700 and exemptions for both of you and the kids.

You must both declare your worldwide income for 2007. If you have any foreign income, and on that income you paid taxes in the foreign country, then you can claim foreign tax credit.

You will complete forms W7 (application for ITIN) for your spouse and children and attach with your tax return. You can also deduct moving expenses. Use form 3903.
Read more about moving expenses: Your U.S. Tax Return: Moving Expenses