Thank you so much for your answer. I have one more question regarding this:
Is it possible for me to work in Detroit, USA as I still have H1 Visa and live in Canada across the border and comute daily. Will it be calculated with in the two years period left for me? or do I have to live in Canada and not cross the border even for half day (coming in morning and going back to canada in the evening)?
Yes, it is possible to live in Windsor and commute daily to Detroit, and it will be counted towards the 2 years that you already have left.
The residency obligation for the renewal of your PR card is 2 years or 730 days out of a period of five years from the date you landed.
Right now, as it is,
if you have continuously lived in Canada for 2 years or more straight, without having left Canada,
then you have already satisfied the residency obligation for the renewal of your PR because you would have lived in Canada for about 971 days. And so, right now, you should be at ease that your PR would be renewed within 2 years time.
And,
If that is the case, do you know that you are only about 124 days away from the residency requirement for citizenship? In order to apply for citizenship, you should have lived in Canada for at least 1,095 days or 3 years out of a 4-year period. If you've been in Canada all along, you should be hitting the 1,095-day mark on December 4 – just 5 months away!
*** If I were you, I would wait until that time – in December when you hit the 1,095-day mark – and then start the daily commute from Windsor to Detroit.
*** That way, you know that you are guaranteed either of the 2 options:
(1) Apply for Canadian citizenship towards the end of 2008, or (2) be able to renew the PR card at the end of 2009.
As a Canadian, you can still work in the U.S. with your H-1 visa.
But by all means, you can start doing the work commute to Detroit at anytime now.