What do you do with a word which is found to
be incorrect later in the game? Do you continue to play or remove the word? If you remove the word what do you do if other words were built off of it?
Probably depends on how competitive you are, remember its just a game. If you did want to remove it, let the dependent words stay where they are. Having an island in your crossword puzzle can be kind of cool.
The rules say if the "fake" word is not challenged before the next play, the "word" is considered locked in and can be played off of like every other word. So basically, rules FTW. But usually someone will challenge the word...