NY, your thinking is right on par. You are correct in your thoughts on the momentum rule. However, overriding that is the fact that a fair catch signal was given. Possession was gained at the 1 yd line, so you are right - the covering official should bean bag the spot where possession was gained and it would be White's ball on the 1 yd line.
Several of you brought up momentum - there are lots of situations where momentum plays a part in spotting the ball inside the 5 yd line. We could talk about momentum for a LONG time. If momentum carries a player into his own end zone, most if not all of the time it will not result in any kind of scoring. Momentum is one of the more tricky areas that officials have to deal with in calling a game. Most of the time whether a safety or touchback is scored depends on who put the ball in the end zone - however, when the momentum rule is in effect, that is not the case.
jake, we had a situation come up on Friday night that I wanted to get your opinion on. We were in Montgomery calling a game that was very close. Toward the end of the game, the visiting team was near the home team band. On third and fourth down, the home band played very loud, not a song but basically noise for distraction. I went to our white hat and asked him if we needed to stop play and direct home management to direct the band to stop playing. He stated that he did not think that the band playing was in the rule book anywhere. However, band or not I felt it was in the best interest of the fairness of the game to allow the visitors to hear the snap count. Any thoughts?