Thanks a lot everyone. I believe your answers have resolved this interesting scenario.
Maybe this should be spelled out more clearly in the Rule/Case books.

ok ok ok my turn, LOL change this last situation slightly...A1 dribbles ends his dribble...looks to pass to A2, starts to pass, sees A2 turn his back and trys to hold up, but drops (fumbles) the ball, it bounces and he goes to retrieve it...and is the first and only player to touch the ball....Ok hammer away...

Seems to me you have a fumble, though in reality, most would call a double dribble. If it is a fumble (defined as ball slipping from grasp), there is no violation to retrieve it. Player cannot recommence dribble, but can pivot, pass, shoot, etc.

Yeah that is what I would have too coach, just a fumble, no violation, but no more dribbling...and if they drop it again then well a violation for making a travesty of the game LOL :)