you should check with the program you are interested in to see how many courses transfer over - chances are you will have to retake several classes (especially if you transfer to a more elite program).  typically things like theory and studio don't transfer - but other things you can fight for if they don't initially accept.

I switched M.Arch programs in the middle. I had started in the 3 year program at one school, didn't like it, so I applied to a different school. The second school gave me 1 year advanced standing. No credits or classes transfered, but since I had the advanced standing, I finished the M.Arch at the second school in 2 years.

If I hadn't been granted the year advanced standing, I would have had to start over the 3 year program at the second school. If that were the case, I may not have made the swtich.

commuter, when did you decide to apply to the second school?  did you have to take a year break?  what was your undergrad?

I switched schools after a year and all of my credits transferred and I actually graduated before I would have if I had stayed at the other program.  Both schools were highly ranked and competitive.  It wasn't easy though-most programs don't like to take transfer students and I was one of only two they had taken.  But call the program you are interested in and explain what you are looking for, why your program isn't working for you and if they accept transfer students and the likelihood of credits transferring.  You have to call though.  Asking on here won't get you much since every situation and school is different.  And you won't hurt yourself by calling-most likely they will be very happy to talk to you-but I would do it now before they start getting applications in b/c once they start getting the influx of applications they will be busy and will be less likely to speak with you.  If you can go visit the school you are interested in now too, I would do that.

Best of luck!

How did you ask for recommendations in this situation- were you able to approach the same ppl as in the previous year?

I asked some of my previous recommenders and some of my new professors.

Interesting. I am going through exactly the same dilemma. I would take a year to work, but I am worried I won't be accepted at a better university next year. 

The schools I called said yes they do look at it case by case. Some said they will only look into this after I join the program and start enrolment. 

I might try to get a clearer answer when I call again. I feel this is all too vague to make any concrete plans upon.