H4 to H1 while H4 is in extension

[sinto antony]

Hi,

My H1B is getting expired on July 31st 2012 and so the H4 of my wife.

I have initiated the H1 and H4 extension from my current employer.

My wife wants to apply for H1B in April 2012 (2 months down the line).

1. is it possible to apply for the H1B for my wife when her H4 extension is in progress (and My H1B is also in extension)?

2. When she applies for H1B,will the H4 extension gets invalidated? if that's the case what will be her status after July 31st if H1b is not approved by that time(July 31 2012)?

hoping your suggestions and inputs .Thanks in advance