Yea block initiative is fine
Ms. Pendergast and Ted are up next
You can move your own tokens so there's no confusion on where you wish to move.
Powers that require a ranged attack roll like rays will be under the -4 effect for firing at a foe that is in melee with an ally. I will rule that you can choose not to take the -4, but risk hitting an ally if you miss.
Powers that do not require a roll to hit are not subject to this ruling.