So I have worked for this one company for about 6 months they are going to lay me off, and I will be eligible for unemployment. But they are asking me if I can hang around for about a month to finish up some work and be an independent contractor with a 1099. After the 1099 job which is about a month can I start collecting unemployement, or am I screwed beacasue I went from w-4 to 1099.

You'll be screwed as being a 1099 means you have a job. Being laid off means you don't have a job. The company is playing ends against the middle with you. Can you somehow talk them into keeping you on for another month instead of making you an independent contractor instead? Because if you do try to collect unemployment and the company IS paying you as an independend contractor this would be fraud on your part and the company would naturally deny your claim as you are still employed by them. And if you try to collect unemployment after you've been a 1099 employee your claim will be denied as you were not laid off but your 1099 job ended. Different thing altogether.