advice please on filling out my application

can someone confirm about the us license?

Consider it confirmed. You do not hand over your US licence at any point.

Useful link:

http://www.direct.gov.uk/en/Motoring/index.htm

Hi Hikergirl,
  Having a US license is pretty irrelevant because you have to start over, like you're 17.  Provisional license, theory, hazard perception, and practical test.
Also, now, because you've been here over 1 year, you're subject to L plates and only driving with someone over the age of 21 in the passenger seat. 

You do not need to turn in your US licence.  You cannot, however, continue to drive on your US licence over the year while living here.  You do, unfortunately, have to go through all the tests and hoops to get a UK licence (including a written and a practical exam).  They also relieve you of your passport for a few weeks.