I definitely read through the rulebook before posting. I knew the punter was allowed to recover the ball and continue play.
For some reason I had thought you weren't allowed to attempt a second kick, but couldn't find anything about that in the rulebook. Good to confirm that is allowed.
During the game I had wondered about illegal touching, but later saw in the rulebook that the touching would have to be intentional, which makes sense.
Bulldog, you may not have recognized this yet, but even if the BC advances the ball across the NZ, if he returns in/behind the NZ, he may make a scrimmage kick from there, as well. So, kick is blocked, punter recovers behind the NZ, advances beyond the NZ, then returns behind NZ and kicks it again - all legal.
An A player might receive the snap or hand off, intends to punt, but sees that he won't get the kick away, so he attempts to advance for a first down (or they simply run a fake punt and try to get a first down), but the BC sees he won't be able to get the first, but has crossed the NZ - he may return behind the NZ and kick it.
Happened in the WAC back around 2004 or so. Fake punt, so BC advanced to the about 1/2 yard beyond the NZ, but could see he would not get the additional 5 yards or so that they needed, so he very astutely retreated and was in - but not beyond - the NZ when he kicked the ball. Team B recovered the bouncing ball, made a short return, and was tackled. B's ball, 1/10. All legal.
However, he would not have been allowed to forward pass the ball. Once the ball has been in possession beyond the NZ, it may not be passed forward. But it may be kicked until possession has changed, or a kick has officially crossed the NZ.