Guardian website now update with Keith Hackett's verdict - so if anyone is still in any doubt, this should clear it up:
"Standing in an offside position is not an offence. But when he receives the ball he becomes active, so you have to declare him offside. Restart with an indirect free-kick...
By coincidence: this week's "you are the ref" strip in the Observer (number 3):
http://www.theguardian.com/football/2014/mar/06/newcastleunited-laws-of-football#_
In next week's strip: a corner kick bounces off the post back to the corner taker, who controls the ball...