Can I apply for change of status to F-1 before decision is made on B-1 extension application?

Proceed though an attorney. You will be running into either bridging problem i.e. pending intervening petition. Or USCIS could simply deny B...

Can help me about Asylum

Good state? You cannot do it unless you establish basis - i.e. residency. Proceed through an attorney - this is too complex for you to handle on...

I am in J1. my wife(J2) converted to Christianity. she want to apply for asylum. if she get it, does it wave my two year home?

If she gets Asylum you can get status. And also note that for your waiver - you can also use persecution in home country as an additional ground...

Immigration and trespassing charges

Hire the best criminal defense attorney - and see if you can get the best deal with the reduced time. Any felonies or crime involving moral...

Where do I report an illegal alien?

Why not report to police about drug related activities - if you really have evidence. Now $1700 from 9am to 9pm sounds like hard earned money to me.

Is there some way of Express processing of Adjustment of Status with USCIS (I-485) based on DV Lottery?

No. You are in the same boat as every one else.

Can I work with my husband work permit ?

No. You need to have your own work authorization.

If both of you were physically present during wedding ceremony, that is not a proxy marriage. You can easily explain USCIS that they are mistaken....

Working on OPT for university. After OPT expires, can I join a different commercial firm that has not filed for my H1 by April?

Cap gap benefits are available, irrespective of weather you work for employer who filed H-1B or some other employer. It has several limitation....

No consequences until decided. You definitely would have to disclose about your arrest record whenever you go seek any immigration benefit...