Indeed you are wise to consider transferring law schools. It is quite common and most top law schools will accept approximately 10-25 transfer students to add to their second year class. Generally, these transfer students were from schools that were 1 or 2 tiers below these top law schools, with the transfer students having excelled (ranked in the top 5% generally) in their first-year classes. Occasionally, you get students who transfer from relatively equal schools (such as from NYU to U.C. Berkeley's Boalt Hall) just because they want a different experience. In that case, the need to be in the top of your class is somewhat minimized.
While your first-year grades will be first and foremost in determining whether your transfer application is accepted, having a good personal statement can also be important. Show them that your marginal undergrad grades are no longer a reflection of your academic potential due to some reason such as time away from school, finding your focus, or not having to work frequently as you did during your undergrad years. Convey that your high-first year grades are reflective of your potential now and what you will achieve in their law school.
Regarding job interviews, transfer students are definitely not looked down upon by law firms. Transfer students are generally very focused and hard working, whereas those first admitted may have aced their LSAT but not have the focus and stamina to succeed in a New York law firm. Transfer students generally had more than their fair share of offers after interviews.
When applying to law school I HIGHLY recommend that you apply to many law schools, for you are sometimes amazed that you will be rejected from a lesser ranked school and accepted in to a top law school. I recommend the same when applying to transfer, apply to many law schools to maximize your chances.
All of the above being said, do not kill yourself with stress during your first-year striving to be at the top of your class. If you make it great and either transfer or stay, for with both options you will have many job opportunities. However, life is too short to ignore present happiness while toiling for a future goal (not that you were going to), so enjoy and learn as much as possible during your first-year classes and just confidently believe you will succeed and this will be the likely result.
While the first-year of law school seems inherently stressful, it is also the time when you will learn the most and meet the majority of your friends. At the same time, first-year grades are by far the most important and set the tone for how well you do in your job interviews. Try to both have a great time while being very focused. I need to write a section on how to succeed in your first year at law school, I will see if I can get that posted in the next month or so.
I would greatly appreciate it if you would consider writing a profile of your law school as the year goes on and your sharing your perspective of it for future students (this offer goes out to any law student reading this). I really am glad that this site is informative and hope to make it even more useful as new content is continually added and I am always looking for new writers. Just post your willingness to be an author and I will be thankful and contact you.
Good luck, enjoy your first year and hope to but do not plan on transferring law schools!
The following is a great article on transferring law schools: viewtopic.php?f=22&t=82937