H1 Transfer After first denial

[pbs11]

I am in the situation:

1. I transferred my H1 from company A to company B and based on receipt I started working for company B.

2. Got RFE and after responding that got denial from USCIS. At that time I had 9 more days validity of I-94 and company A's H1.[valid till 16th November'11]

3. Company B filed MTR and it reached USCIS on 16th November '11.

4. I used valid H1 of company A, paystubs from company B that I worked on receipt and filed H1 transfer to company C. We sent overnight fedex on 16th November '11 - on the day when company A's H1 and I-94 was valid.

5. Got receipt from USCIS for the date 17th November '11 i.e. next day of I-94 expiry. and I started working for company C based on receipt.

My question is:

1. Is it okey that application receipt number is 17th November'11 i.e. one day after I-94? or do we need to inform USCIS to excuse us?[Got to know that there is 5 days window and need to file a paper to excuse for delay].

2. Will I accumulate illegal stay or unauthorized employment if H1 approval (transfer to C) is prolonged or denied? or considering MTR is filled, I am fine and not running risk?

3. Considering all the fact is it advisable to convert the application to premium processing or I am good?

Truly appreciate your response.

[Chitown01]

3. Yes, you should have filled thru Premium Processing in the first place. Considering how complicated your case is. Upgrade to Premium asap.