(And I should have read all the way down before posting... Rich already said it).

After watching this a few times, it also looks like the K team member that recovered (the gunner) was offsides...but that wing looks like he bails early too. Tough angle though.

As Rich pointed out, there's at least one issue here in NCAA and maybe more in NFHS...and I think he pops it up off the tee, so the ball was never grounded either to work in the other 48 states not using NCAA.

As it's already been said, in NCAA, the ball doesn't have to be grounded.

However, if an R player is in the area to make a catch and a K player catches the ball, then it's kick-catch interference.

Is this correct?

Correct. Not that you asked but in this play I don't think he was close enough to being in position to catch the ball.

That's what I reiterated, as a few of us were referring to what else would've been gigged had it been NFHS provisions.

And yes, almost all of the R players actually retreated towards their own goal line so no KCI.

I think the fact that he didn't catch the ball and was nowhere near the guy that did actually catch the ball is proof that he was not in position to catch the ball.

The guy at the back of the huddle is still in illegal formation though.

Suppose he were one of 2 or more players in that position at the RFP. Could team A/K buy out of the foul by calling time out?

In NCAA, yes. Though he is technically restricted from being from being beyond 5 yard at the ready, it is not a foul until the ball is kicked.

Any fouls resulting from play continuing after (what should have been) the whistle? Ball is dead on recovery.

There's an additional wrinkle in NCAA... Team B is still entitled to fair catch and KCI protection if the ball is kicked off the tee directly into the ground and bounces directly into the air "in the manner of the ball kicked directly off the tee." (6-4-1-f, for those interested).

Not applicable in the particular play, of course, since no Team B/R player is in position to catch the kick, but thought I'd mention it for completeness sake.

Is this the applicable rule?