At what "point" before the ball is snapped does it go from a legal shift to false start?

If the lineman and backs are ready and the quarter back is under center. Can he still audible out as long as there is a one second delay before hicking the ball?

Yes, as long as he does it in a smooth non-play-starting motion... :) and anyone else that shifts does so in the same manner, then are set for a full second after they are done "shifting"

Rule reference would be 7.1.2
ARTICLE 2.
a. Shift. After a huddle (Rule 2-14-1) or shift (Rule 2-22-1) and before the snap, all Team A players must come to an absolute stop and remain stationary in their positions for at least one full second before the ball is snapped, without movement of the feet, body, head or arms (A.R. 7-1-2-I).
b. False Start. Each of the following is a false start by Team A if it occurs prior to the snap after the ball is ready for play and all players are in scrimmage formation:
1. Any movement by one or more players that simulates the start of a play.
2. The snapper moving to another position.
3. A restricted lineman (Rule 2-27-4) moving his hand(s) or making any quick movement. [Exception: It is not a false start if a Team A lineman immediately reacts when threatened by a Team B player in the neutral zone (Rule 7-1-5-a-2) (A.R. 7-1-3-V)].
4. An offensive player making any quick, jerky movement before the snap, including but not limited to:
(a) A lineman moving his foot, shoulder, arm, body or head in a quick, jerky motion in any direction.
(b) The snapper shifting or moving the ball, moving his thumb or fingers, flexing his elbows, jerking his head, or dipping his shoulders or buttocks.
(c) The quarterback making any quick, jerky movement that simulates the beginning of a play.
(d) A back simulating receiving the ball by making any quick, jerky movement that simulates the beginning of a play.
5. The offensive team never coming to a one-second stop prior to the snap after the ball is ready for play (A.R. 7-1-2-IV).

So can a player be in motion at the snap? Does it matter if the player is on the line of scrimmage or not? Article 2 a. above seems to indicate that all players must come set before the snap but I have seen players go in motion and be moving at the snap.

1 back may be in motion at the snap.

Man in Motion.
1. One back may be in motion, but he may not be moving toward his opponent’s goal line.
2. The player who goes in motion may not start from the line of scrimmage unless he first becomes a back and comes to a complete stop.
3. A player in motion at the snap must have satisfied the one-second rule—i.e., he may not start his motion before any shift has ended (Rule 2-22-1-c).

Taking that in consideration………..OTeam lines up in the I formation and DTeam is loaded up for the run.

OTeam audibles out to a mini spread.

QB calls his audible "blah"

My question is can the lineman (Other than the Center which would be considered the Middle End/Interior Lineman) (A) move from the tight out towards the sideline and reset? (B) a backs move towards/or to the line of scrimmage and take on a single back approach? Also, performing both A and B together?

All with a 1 second delay before motioning or hicking the ball :)?

Oh yeah Line man are not allowed to motion.

Person in motion is required to be 2 yards away from the line of scrimmage or as mentioned a "back". i.e half back, full back, spreadback, quarter back and wing back.

Did I give to much info for feedback?

Looks good on the diagram. As long as they shift in a smooth fashion without simulating the start of the play. Once they get in their final position they must all be stopped for 1 second before the ball is snapped.