H1 visa going to end by few months.. want to convert to H4 - Confirm me

Hi Saurab, Thank you very much for your service. I have few questions. My wife is at H1 visa right now, her visa is going to complete 6 years by April 2013. I know that she cannot stay after that period in the same visa. I am in H1 visa. My question is whether she can convert to H4 and can stay with me or she have to leave the country, have to stay abroad for 1 year and have to come back. I heard from few people that either H1 or H4 if we complete 6 years, we have to go out of the country. Kindly clarify me. Thanks

She can move to H-4 and continue to remain in US as your dependent.

If she wants to go for H-1 in future, then she will have to reset her clock - which means leaving US for 1 year and then go through the cap again.