I just got a letter from the local INS office with the following information for my case:

I-765 Processing time 90 days
I-485 Processing time 180 days
I-130 Processing time 300 days

1) How come it takes more days for I-130 compared to I-485. I was under the impression I-130 has to be approved before I-485 can be processed or at least they have to be concurrent?

2) My I-94 is only valid until Feb 2003, however the I-485 time frame is Mar. 2003 as per the INS notification. If my interview for I-485 is in March 2003 or later and my I-94 has already expired, does that mean I am in trouble with INS.

I am currently on an H1 and in status until Feb 2003 and I cannot renew it after that (6 yr limit). What are my options?

If you already filed I-485 you should not worry. Even if your H-1 status comes to an end, you will remain in status in "applicant for adjustment of status" category. Assuming that you'll have EAD by then, you can continue to work without interruption, and AP would allow you to travel.

Consult with an immigration lawyer or your HR department to make sure your status is secure.