L1B - Blanket (Not Clearly Approvable)

[l1b2mtv]

Hi,

I had a rather disappointing experience at Chennai yesterday (5th September) - here is how my interview went:

Me: Hello
VO: Hello - please give me your documents
VO: (After looking at I129S) - at the onset, I would like to tell you that there is a problem with your application - your HR has marked "No" to 4h which essentially means that they are not seeking specialized skill visa for you
Me: (Politely) I guess that may be because I am going to be with my parent company and not at any client location (4h pertains to whether applicant will be deputed at client side)
VO: You are going to be required in US for 3 years (in a surprised tone)?
Me: Product has a roadmap for 2 years and then probably few months of buffer if it runs over - like most IT product do - and support/training to the team before I can leave
VO: Whom do you work for? (Answered) 
VO: How long you have been working for this company? (4.5 years)
VO: What will be your salary in US?
VO: What are your roles and responsibilities here in India? (Answered)

Unfortunately, VO never asked anything about my specialized skills or bothered to look at any of the supporting document - I129S had mentioned an attachment for specialized skill but the VO did not look at it. He never asked why I am needed in US or anything about my special skills.

At the end, he just said - there is nothing wrong with you or your details but your documentation is unclear and your Visa is not clearly approvable. I asked him whether it is anything to do with specialized skills - he said it is nothing to do with you and said that just go and take this to HR and ask them to re-apply and you would be fine.

I am completely stumped at the response - my special skills are pretty niche as it involves a patent-pending technology - unfortunately VO did not give me a chance to speak about it or never asked for it - nor did he gave any justification or written advise for rejecting my Visa. He just kept one copy of I129S with him and returned two to me marking "Not Clearly Approvable"

Now my queries:

1. My company's attorney feels that I should re-apply to the consulate as the VO did not reject based on case merit - he says if during the second interview VO asks why it was denied, I should try and explain that the case merit was not discussed and the reason provided was unclear documentation (which seems to be the case and he says they will prepare a fresh package). Attorney says that in case the visa is rejected 2nd time, we still have the option of applying for L1-Individual. He says that L1-Individual is more stringent and I have a better chance with blanket.
2. I am skeptical to go via consulate route again as there is no guarantee that the visa will be granted and feel that USCIS is better option.
3. What would have went wrong with my interview? Any idea?

4. The CEAC site shows "Administrative Processing" against my case - is this normal for visa that have been turned down?

Thanks,