Check Swing - Dropped Third Strike

[carldog]

I've read about this previously here...just can't remember it: With no one on base and 1 out, Batter checks his swing on a 2-2 pitch in the dirt. Ball rolls to backstop. Ump signals/indicates a 'ball 3'. Once the catcher has retreived the ball, he requests an appeal. On appeal to the field Ump, the call is changed to strike three. Batter is instantly / easily tagged out.

First, what is the proper sequence of events here for the Umps? Was this handled well?

Also, what does a coach instruct his batter to do in this situation? If he runs to first, it looks like he is confirming / acknowledging a swing/strike. If he does not run, he risks being a dead duck.

Thanks!