If you are adjustment eligible based on your good faith marriage to your USC spouse you are eligible to file Form I485 at the same time as your...

What i i will write in my ds260 form please

You should indicate your current marital status on form DS 260.

A full review of your case is necessary before providing answers to such in depth questions. Consult with an attorney for guidance.

Two-year rule in visa stamp, DS-2019 says I am not subject, and my country is not issuing "no objection letters"

Your questions require a consultation given the in-depth nature of them. Such a free public forum is not the appropriate place for that. You can...

Can I file for my husband and am not a citizen

It depends on your status currently whether you can apply for your spouse’s permanent residency or for a dependent visa. Consult with an attorney...

You must list all addresses since the age of 16 so any gap after 16 will be a problem on the application.

My fiance is an undocumented immigrant, and she lives in Wisconsin. I wonder is there anyway for her to fly out here to CA?

I agree with my colleague - she should obtain her passport through her consulate if she does not currently have one.

What are my options to correct my situation?

The extensive nature of your questions requires an in-depth consultation with an attorney in private and not through this forum.

Yes the H1B gives you authorization to work legally in the US and there is no stipulation as to where you reside, assuming you are legally able to...

Yes you can apply for the waiver based on your criminal record. It is advisable to consult with an attorney for a review of your file.