Need Guidance on Pending H1B - Very Urgent

[ajithvy]

We had applied H1B for my wife in July 2010. The dates are:

H1B Receipt Date: July 18th 2010

Received RFE on: Oct 19th 2010

Actual RFE Response Date: Nov 27th 2010

RFE Response received by USCIS on: Nov 30th 2010

Second RFE raised by USCIS on: DEC 13 2010

USCIS received the response to first RFE on Nov 30th 2010 wherein the actual date to respond was by Nov 27th 2010(there was a 2 days delay due to ThanksGiving Holidays) and USCIS had raised second RFE on Dec 13 2010.

After speaking to USCIS in April 2011, we got to know that her case was DENIED on DEC 13 2010. But the glitch is, Second RFE was raised on Dec 13 2010 and case was denied on Dec 13 2010 without notifying the employer/attorney about Second RFE.

On July 20th 2011, we got to know about the scenario on call with USCIS and a service request was raised. We were supposed to receive a response by Aug 4th 2011 but we didnt.Now again they say we need to wait for 60 days to receive any update.

We are totally in frustration and are not sure what to do next. I need your guidance.

1. Can we proceed with applying for another H1 under 2011?

2. If so, what could be the challenges that we need to face because of Prior H1?

Appreciate your help.