Guys & gals,

Is this accurate?
If so, any other nuances?

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With DP/DEFO, you have 10 players in the game, not nine. Both the DP and the DEFO are starting players.

As with any lineup, defensive position swaps are not substitutions.

As with any lineup, a substitute bats where the player she replaced was batting.

DP/DEFO are joined at the hip wrt batting order. If both players are in the game, the DEFO has number 10 in the batting order (i.e. she does not bat). The DEFO can only bat if the DP is removed from the game. And the DEFO/DP always bats in the position the DP occupied at the beginning of the game. Both the DP and the DEFO can be substituted for the the usual ways, but the substitute takes on the role of the DP and/or DEFO, including place in the batting order.

The DP starts at the defensive position of "F10" - benchwarmer. This means you can swap the DP with any player other than the DEFO on defense and no one has left the game; it is not a substitution. The player removed from defense continues to bat in her normal place in the batting order.

If the DP comes in on defense for the DEFO, the DEFO has left the game (the lineup goes from 10 to 9 players). If the DEFO re-enters on defense (which she can, 1 time), the DP returns to offense only and the lineup goes back to 10 players.
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Dakota,
Yes, that's a really good beginning. Along with that, keep in mind that once you start with a DP & DEFO, those positions NEVER leave the game. Take it from this point & expand on it and you'll have a good handle on everything that a coach can and can'tdo with it.

What about playing shorthanded?

What happens in the various scenarios? As I read the rule on playing shorthanded, you can continue to play with one less than you started. So, with DP/DEFO, you can continue with 9, but if you drop to 8, it is a forfeit.

Is this right?

Also, suppose the player you lose is not one of the DP/DEFO pair. Do you continue with DP/DEFO? (i.e. 9 players in the game, but bat only 8?)

Dakota,
Almost right. If you drop to 7 batters, the game is over. Since the DP can play defense anywhere, you're only seeing the loss of a player offensively (if the DEFO is not the injured/removed player).