I'm applying for the 09 match and although I would love the H1b, I'm looking into all possibilities if I only get offered J1.

My question is about the 2 year period. If somehow I can't get a waiver for the 2 years and I have passed all my USMLE's 1-3 and finished my US residency. What do you do in that 2 year period? Is it possible to work as a physician in Canada? And if so, is that hard to get a position? I remember Canada not being very IMG friendly (I am a Canadian citizen). Thanks to anyone that can help.

Two options:
(1) You can get a fellowship in Canada for a year or two.
(2) Or you can live in Windsor and work in Detroit. The requirement for the two years is that you live outside the U.S., therefore it is possible to live in a Canadian border town and work in the neighbouring U.S. border town.

NO, to no (2). In order to work in US, a canadian citizen needs a work visa and with 2-yr home requirement, US officials aren't going to grant you a working visa. So, technicially you're stuck in that cold (literally & figuratively) country that we call CANADA.

I've heard that it is possible to stay in the US if you agree to work in an underservied area, is this true?