>> "During the X period, returns TA_OK, no contact of the server."
Yes.
>> "During the Y period, returns TA_E_INET upon the first call, this call does attempt to contact the server."
Yes.
>> "During the Y period, returns TA_E_INET_DELAYED for next 5 hours or so, no server contact."
Yes.
>> "During the Y period, returns TA_E_INET after 5 hours, basically repeats the above until Y period runs out."
Yes.
>> "After the Y period, returns TA_FAIL."
Yes, and you can then use IsActivated() to see if IsGenuineEx() is returning TA_FAIL because the customer was never activated or because the customer has been blocking your app's access to the servers.