Dead Ball/Live Ball??

[Buck912]

I need some feedback and opinions on this one. The situation is this...a fair batted ball strikes a baserunner while they are on the base. I know the baserunner is not out but my question is, when is it a dead ball as versus a live ball? The rule book (federation) states that the runner is not out and the ball is either live or dead, depending on the position of the fielder. That's all it says with no further explanation or examples. This did happen to me during a game in the fall and I simply called it a "dead ball" and awarded the batter first base. I don't think any of the coaches knew any better so I got away with it. Now I've been thinking about it and would like some comments. Where does the fielder have to be, in relation to the ball, for it to be either a dead ball or live ball??