Refer to the definition of a batted ball under Rule 1:
Any pitched ball that hits the bat or is hit by the bat and lands either in fair territory or foul territory.
Also refer to the April 2008 Plays and Clarification on the ASA website
http://www.asasoftball.com/umpires/c...nsandplays.asp
Also think of it another way. Pitcher pitches a pass ball that hit the ground and does not go out of play. Do runners advance at their own risk or are they automatically awarded the next base.
They are not automatically awarded the next base but can advance at their own risk. Since an out cannot be called under dead ball circumstances, the ball must be live.