When the holder's knee is on the ground he can only spot the ball for a kick 
(convert/field goal) play.  If the holder wants to pass the ball or hand off, 
his knee must be off the ground when he makes the pass or hand off .  Before he
receives the snap his knee can be on the ground and when he receives the snap, 
his knee can be on the ground, but when/if he passes/pitches the ball his knee
must be off the ground.  The ball being spotted on the ground or not being 
spotted on the ground has no bearing on the play.  This is a play that we, as 
officials, have to review every year.  Now the holder getting up and running 
is slightly different.   In this case the holder can either have his knee on 
the ground or not have his knee on the ground when he receives the ball, and 
then can get up and run. Finally, I'll just mention that if you are going to 
run a fake with a pass, warn the Referee at the Pre-game meeting and let him 
know that your holder will have his knee off the ground when the ball is 
passed.