THANK YOU, THANK YOU, THANK YOU!!!
This post has more answers then almost 20 hours of googling trying to clarify some of those details...
I think the only other question I have left is, what about my step-daughter. Can she change her name similarly like can she put new name under legal and use the Part 14. Additional Information to stipulate birth name or will we need to wait until everything is processed and do a regular name change later?