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Me too. This is why I recommended dhudson to contact an attorney before doing this. It is indeed a perfectly described fraud scenario as push put it.
Thanks all for your responses. I will certainly contact USCIS again before I make the final call to do it this way. Pshbrk may be right, it could just be my selective hearing, wouldn't be a first for me

However, I was very clear in describing the potential scenario to the USCIS guy and didn't word it any way so that the results would just go in my favor. In fact, I asked him at least a couple of times what kinds of reprecussions or consequences this route could have and his answer was what I have already posted, that it would cost a bunch of money, but that that was really the worst of it.
The other option would be to just file normally (or DCF as I was leaning towards) and then have her travel back and forth meanwhile. Really the only difference between the two options is that we would have to travel to Juarez and that whole bit and be treated like herded cattle for a couple of days, but thats the only major difference. I expect the outcome to be the same regardless.
While I sincerely do appreciate the feedback from everyone, I've noticed that there's a real gloom and doom mentality on these forums. Its certainly understandable, our immigration system is absolutely horrendus and has undoubtedly caused a lot of heartache for the people posting here. Having been through the system a couple of times before I know that it's no picnic and I too have a pretty negative outlook. But some positive feedback once in awhile wouldn't hurt. At least some optimism for the rest of us.
If I haven't learned anything else from all of my experiences with the USCIS, it's that if you make noise, flap your arms and throw enough tantrums to get your way, you can get them to eventually bend the rules for you (within reason, of course). All it takes is some determination and dedication, and eventually they'll work with you just to shut you up. You may not get a miracle, but you can come pretty close.
What really leaves me scratching my head is that I've been reassured that this way of doing it (bringing her in and adjusting status in the US) is perfectly fine and ideal by many immigrants from all over (namely China and Mexico). I've met with people personally and via various forums who have told me this, all of which were immigrants themselves in some respect. It makes me wonder: either we're the suckers, or foreigners know the best way to exploit the system... or at the very least they know how to make it work to their advantage.