Here is an e-mail clarification to the LBR from the LL UIC back in 2006. It hasn't changed since then...
1. On ball four the batter-runner has the right to touch the first base bag and then round and turn/advance towards second base. As long as the runner is in motion it does not matter whether the pitcher has possession of the ball in the circle or not, it is not a violation. Once the batter-runner has rounded first and then stops (whether it is one foot off the base or thirty feet off the base) then the circle rule goes into effect, which is the runner must immediately advance or retreat. Because everyone has a different version or idea of what immediately is, we instruct at the Umpire School to use a count of one thousand one, one thousand two and if the umpire gets to one thousand three that is too long and is a circle violation. Also once a runner has stopped and the count goes into effect, whichever way she/he has decided to go she/he must continue in that direction or that also is a violation of the circle rule.
Under Little League Softball Rules.
When there are runners on base and the batter receives a walk, the runner/runners on base are also bound by the circle rule. Example being: runner on third base, batter receives a walk and is running towards first base with the intention of continuing on to second base to draw a throw at second so the runner on third can attempt to score. The catcher throws the ball back to the pitcher within the circle before the batter-runner reaches first base. The runner on third base is bound by the circle rule whether the batter has reached first base or not so if the runner on third continues to advance towards home she/he is legal, once she/he stop or hesitates she/he is now bound by the circle rule if the umpire performs the count and she/he has not advanced towards home or retreated to third the umpire will declare "Time" the runner on third base has violated the circle rule and the runner is out and the ball is dead at that point. If the batter-runner has not touched first yet or is between first and second when the violation occurs, the runner on third is out and the batter-runner is returned or stays at first base. If the batter-runner had legally advanced to second base before the violation, she/he would be allowed to stay at second base.
So in conclusion, the pitcher having possession of the ball in the circle does not automatically freeze the batter-runner or runners or constitute a circle violation. The defense must make the offense stop or hesitate to put the circle rule into effect. Theoretically, a batter could receive a base on balls and continue to advance completely around the bases (pitcher has possession within the circle before the batter reaches first base) until the defense makes her/him stop or the pitch begins. As stated above the guideline we instruct is the one thousand one, one thousand two, one thousand three if they are not advancing or retreating by the third count it is a violation and the runner is called out and the ball is dead. All runners are bound by the circle rule when the pitcher has possession within the circle.
Also, this is a link to the LL Umpires School Rules Manual PDF. Rulr 7.13 explains LBR...See if it's more indepth than the book...One thing about LL, the book has alot of gray areas, so you have to seek out the proper clarification.
http://www.littleleague.org/umpires/...les_Manual.pdf