"Is the first step on beat one in a Modern Waltz a rising step. Commence to rise at the end of one. We are down at the end of one before we commence to rise."
You forget that the official "rise and fall" only includes some components of change to the body alititude, not all of them.
There is actually a net gain of altititude occuring before the official commencement of rise in the feet which you have quoted.
"If this is a Natural Turn ,first three, our second step is low still rising."
Still rising yes, but starting from a point already somewhat above the lowest depth that was reached during the downswing.
"Lets not forget that at the same time the lady has no foot rise on one NFR."
Nonethless, she does have rise, though not in the form of raising her heel nor quite as much in amount as her partner.
"So where is the moving foot in relation to the standing foot at the end of step one before step two is taken."
At the dividing line between step 1 and step 2 it is parallel, but the simple fact is that the heel should already have broken free there. The action of the foot rise begins within the ending of step one, not straddling the dividing line between step 1 and step 2.
Also bear in mind that the body will be ahead of the closing foot here - the body will already be passing beyond the standing foot, a little before the moving foot finally passes the standing one. In effect, the body is already swing on up into step two, before the feet have quite completed the offical program of step one.
Also, the inital breaking free of the heel during the ending of step one (before the feet pass) is not so much about foot rise as it is about the natural carry through of the weight from the toe to the heel. The same thing would happen on a feather step in foxtrot, where the corresponding action for the lady is clearer: she will be rolling her weight into her heel and should be just about to see her toe break free from the floor - something that technically must happen by the time her moving ball of foot passes her standing heel.