Is this good enough to apply for a green card ?

Whether your employer decides to file an employment based immigrant visa petition or an H1b non-immigrant visa petition is up to them rather than you. Either way, your employer has to sponsor you and file the petition. It can take quite a while to process the paperwork, but there are obviously more requirements to be an immigrant in the US, than a non-immigrant. If they really, really like you, as you said, maybe they'll go the immigrant route if the H1b is unavailable. But that will take quite a while to complete the processing.

The company can apply for one of several "temporary nonimmigrant" visas for you to come to work for them, including an H1B. The problem is the limited number of these available, and the track record of the company itself with regard to handling immigration and visa issues. For the next round of H1Bs, the company cannot submit an application until 01 April 2008 - with you being unable to enter the country (assuming you made the cut and got approved) until 01 October 2008.

Unless the nonimmigrant work visa is an H1B, though, they are NOT eligible to apply for a change of status to start you on your way to permanent residency. This would be a direct violation of the intent of the visa, canceling your current status and effectively turning you into an illegal alien.

They can also choose to sponsor you directly for permanent residency, but this is EXTREMELY expensive and time-consuming, from their perspective. Particularly if you're basically an "unproven" prospect. Depending on where you are coming from (geographically), the wait time for such a visa is anywhere from 18 months to 18 years due to the volume of immigration petitions being submitted (compared to the volume of immigration numbers available).

Note that in all cases (including employment-based permanent residency), the COMPANY has to do the legwork of sponsoring you and acquiring the visa; YOU cannot do so. The basics of their argument would have to be that they had advertised the position in the US for some period of time, that there were no qualified US citizens (which is different from citizens who were not selected for the position), that they had advertised internationally for a certain period, that you met or exceeded the academic and experience qualifications of the position, and that they actually had offered (and you had agreed to accept) a position. Finally, when you entered the US, you would also have to prove all the documentation that the company had provided, PLUS prove that you were eligible to enter the US (no criminal record, etc).

George is correct; also your company would file for a work visa for you, once that has been processed then they can apply for a green card for you. Work visa first then green card.

I think you will be fine. You get a jon and the company is saying they will sponsor you. Unless the company or you mess up with the application form that you file, you will be fine and get your working visa and maybe someday for green card.

just make sure you answer everything carefully. Honesty is the best policy :)

They will first have to file a I-140 which is like a work permit, then file your paperwork for Green Card. This process can take up to a year, maybe more. Although, I have seldom heard of companies filing a green card for a candidate rather than an H1B, especially at the undergraduate level. If that's not the cause, then consider yourself very lucky!

No, that means the US citizens require a higher salary. Corporations only want the cheapest.