You don't have to withdraw the money for individual expenses or even keep the money in a separate account.  You just need to spend at least as much on "qualified acquisition costs" (closing costs, down payments and other reasonable and ordinary costs of buying a home) as the amount you withdraw.

Are inspection and appraisal fees considered reasonable?  Moving expenses?  The code is so vague it makes it hard to figure out exactly how much I can get done under the $10k cap.

Qualified acquisition costs would include any of the fees that are normally part of the purchase transaction. Things like inspections, mortgage application fee, down payment, other closing costs, escrow account prepaids etc.  Anything that is usual and customary in the real estate market in your area.  Qualified acquisition costs would not include moving expenses.