I realized that I may or may not be running Spiritwalk correctly. Is this A) a classic astral projection, where the character's body is left behind and the spirit moves by itself, or is it B) a scenario where the character becomes ghostly, the flesh is transformed, and then they reappear at their destination?

I had always played it as A.

I've always played it as "A" too.

And I suppose you would know :-D

Depends on the question, sometimes. Hah!