863211 or Pijiang: question about H1b

I haven't been working for about 10 months now. My old H1b ending date is 2011. I am now back on F1 since I was laid off.

Now I am talking with this new employer about a job. I asked them to transfer my h1b since it is supposed to go through 2012. But they told me since I haven't been working, my H1 is out of status and can't be transferred.

If that's the case, does it mean my old H1b is useless now? For me to work again, do they have to apply for a new H1b for me?