Questions about my friends HB1 visa?

Based on the information you present, possibly. She should consult with an experienced Immigration Attorney with more specific facts on her dates...

I realized that I worked a few weeks past my CPT authorization becaus I had the dates mixed up. Will USCIS deny my reinstatement

Definitely tell the truth. You can explain what happened if necessary.

L1 to H1 conversion.. I-94 getting expired before Oct 1st. Possible scenarios?

The lottery is a long shot. You should consult with an experienced Immigration Attorney.

My friends dad got deported due to drug possession in the mid 80' can he apply for citizenship?

Unlikely. The drug conviction and the unlawful presence are significant issues. Do consult an experienced Immigration Attorney for guidance.

Is there any requirement of revenue/profit for startup before they can sponsor Green Card?

The attorney working the case would be your best option for getting advice.

Is there a specific way /order to put all completed documents together?

No. But it would be helpful to include an index of forms and documents.

My father has lived in the U.S. for 8 years and came back to the Phils in 2010. My priority is now current.

Your father must be a U.S. resident.

My husband started his 5 year penalty in Mexico.Would it affect him in anyway for me and my children to receive cash aid?

No.

Do consult with an experienced Immigration Attorney.

H1B is under 221G, L1B is processed for same company, Can I change to approved H1B petition after going to US on L1B?

Probably. However, the company attorney will be best able to answer this question for you.