Hi
I have been on H1B visa since nov 2007 and my wife on H4 (has ITIN from last year).
I bought a house on 30July 2008. What is my status in US and which form should I file (1040a, 1040).
Am I eligible for $7500 1st time homebuyer credit?
Or will it be better for me to file a standard deduction and not itemize?

Advise how to go about it. Thanks a lot

File Form 1040 with Form 5405 for the First-Time Home Buyer Credit.

You will get the standard deduction most likely. It depends on whether your itemized deductions exceeds the $10,900 joint standard deduction.