Can we renew / file for extension of my existing H1B or do we need to apply for fresh under CAP ?

Please try to refrain from posting the same question multiple times.

Normally not but if you are have cause to worry about prior arrests you are encouraged to have an attorney review your case to avoid problems in...

Aos interview selective services problem ?

Attorney Daniel has given excellent advice and you are encouraged to follow it.

How long does it take to receive a green card after transfer from court to uscis local office

Was the case administratively closed with agreement from DHS?

What I should fill in I-539 , page 2, Que 2(a) ?

Attorney Vega is, as usual, absolutely correct. Make sure the I-20 corresponds to your I-94.

Do you have an H-1B visa (document in your passport) or H-1B status (approved while in the U.S.?)

I have a approved I 140, will i be able to apply for EAD. Also will there be changes to rule based on public comments(in general

Attorney Jaclyn is right - are you eligible to file your I-485 yet? That application also allows for EAD.

If the DMV in CA has a procedure for issuing DLs to people such as yourself i don't see why not.

What are our options for wife, considering her current O1 expires May 31st, 2016?

The easiest option would be for your wife to extend her O-1. You should also file an I-130 on her behalf to lock in her priority date.

If my H1b is picked, I have heard it becomes effective from 1st October if that's the case can I travel back to USA on my valid

Yes you should travel before October 1 if possible because of something called the last action rule. If that is not possible then you will need to...