H4 221g blue form mumbai consulate

[njad]

Background: I am on h1b working on internal project. I was underpaid by mistake of my accounting dept which was found in recent internal audit of my company. They paid me the diff for all the previous months and also started paying me as per LCA but possibly because of that mistake my wife was denied h4 in April 2011 at delhi consulate, because there cannot be no other reason.

My wife couple days back attended the h4 interview in Mumbai. VO asked for pay stub (which is now as per my LCA) and straight away gave 221g blue from asking for only employer related documents and none from me.

Should my employer mention that that was accounting error before and is corrected now (because that might be the only reason of denial of h4 before) or should we just submit what they have asked for?

Is there a problem that its an internal project and not the one on client site or E-V-C model? this is the same project that USCIS approved when my employer applied for my H1b.