H1-B without work - No info on the forum

[sinstoic]

My cousin who is currently on H4 got selected for H1-B through lottery. His company says they will pass his resume to their clients until one of the client hires him. Until then they won't pay him, once a client hires him, they'll pay 70% of whatever the client pays to the company for his services. Unfortunately, no client is willing to take my cousin. Further, all their clients' manpower has been met and there is no place for my cousin to go. The company says there is nothing they can do about it and he better return before he becomes an illegal immigrant.

I understand that his visa will change from H4 (I-94 with H4 is till October 2008) to H1-B on October 1, 2007 (He is told that he will receive I-797 with I-94 till October 2010). Am I correct about the visa change process?

Now that his visa will change to H1-B from October 1, 2007, how long can he stay in USA without work or salary after the visa changes?