Coach, The scenario of an IDFK that you described has to be understood from Referee point of view. Not all rules (high school uses rules, USSF uses laws) are as black and white as we wish they could be. The rule states that a goal can not be scored directly from an Indirect Free Kick. This being said, the ball is kicked and a second player must play the ball before a goal is scored. These questions come up often during referee discussions, 1. what is "kicked"? and 2. what is "played"?
I view running over the top of a ball as not being "kicked". If as you stated the ball did move, then the ball has been "played" but not kicked. I would assume that the referee was requesting assistance from his "assistant referee" as to whether he observed the ball movement.
IMHO the referee placed themselves in an improper position if they were not able to observe the ball the entire time after placing it for the IDFK.