Two year conditional residence

No, it will not harm the petition to remove conditions on residence.

Should I send my passport to India to get H1B stamping?. If so what will happen to my current H1B approval?

You cannot be in the US and send you passport to the consulate for stamping.

Condition to remove from my green card it will expire in 2017 but my daughter will expire this September 2013

You will need to file for her renewal separately, before her green card expires.

Can i still work while applying for the green card through marriage?

As long as you have a valid H1, you can work for the sponsoring employer. If you file for a work permit along with the green card petition, you...

Can I apply for Visitor Visa of USA While I-130 file is running on Initial Review?

No. Applicants for visitor's visa needs to show intent not to immigrate.

As a permanent resident, what procedure I must undertake in order to bring my child from Belize to the USA?

You will need to file for green cards for the children.

I need family immigration lawyer to help me

If a case was filed for him, the answer is "yes"

Can an undocumented worker be granted a work permit?

No

Will there be any problem if my wife files a "No Objection Statement" to waive her J-1 visa requirement to return back to China?

You should retain an attorney to file the petition for you so you can maximize your chances of getting your case approved.

Yes, you can file the H1. You can check status of your case on the "visa bulletin" which is published every month.