When to resign?

[Twix]

I am a temporary work permit holder. I would like to resign from my current employer and work for another employer. I was given a new job offer and the new employer has applied for an LMO. The LMO application is in-process.
1) If I resign from my current employer now, would I be considered illegal to stay in Canada? My current work permit is exclusively for my current employer and is valid until December 2009.
2)Would it be better to wait for a positive LMO for the new employer before resigning? Is the approval of a new work permit guaranteed if I was given a positive LMO?
3) Would it be possible to apply for a work permit for the new employer and wait for its approval before resigning? It's better to be safe than sorry

[Leon]

1) You would be allowed to stay until the end of your work permit and look for a new job.

2) Yes, it's better to wait.  No, the approval isn't guaranteed but very likely since you are already in Canada on a work permit.

3) I know in the case where you can apply for a work permit at the border, you can do that without having quit your previous job.  Your new work permit invalidates the old one so once you do this, you can not work for the old employer anymore which means he may be pissed off if you quit without notice.  If you do not qualify to apply for a work permit at the border, I think it still works the same but call CIC and ask.  If you can wait for the work permit to be approved, it's safer for you.

[Twix]

Thanks for the advice the Leon. It was helpful.