Docked Ships are Ship that Have there engines Up but Not Powered?
No, docked ships are ships that are inside a Hangar. They may be Launched at any time.*
*Possibly you'll get some sort of "not yet, wait a few hours" message if they are reloading box launchers and/or repairing armour.
Inactive Ships are Ships that Have there Engines Not Powered Up and will take a While to get there power up for use?
No idea. I think Inactive ships are just ships in a Task Force that has been set to 'Inactive' status so that it won't throw any error messages, such as "Out of Fuel" or "Cannot complete orders".
Mothballed Ship are Parked Either in orbit around a Planet (or On a Planet), Have No fuel, Ammo, (Small craft (maybe)) and are Shut down & open to space?
Mothballing has been un and out of the game (currently out). Last time it was in, Mothballed ships had no crew (they were returned to empire crew pool), and took six (three?) months to un-mothball and make fully functional. Everything else was flavour text.
Mothballed ships are the Only ones that would need to be taken to a Ship Yard to reconditioned to Use Correct?
That was the rule at one point, but I beleive it changed to 'un-mothballing in place' before mothballing was removed entirely.
As for Inactive ship a Hour or 5 and the Ship would be ready to be moved?
In VB6 Aurora, it should be as simple as setting it to not-'Inactive' status. Again, Inactive exists primariy to stop your game from harrassing you about a ship/fleet that will require days/weeks to be 'rescued' from whatever its current difficulty is.