Your relief area for dropping a ball will be a fixed size of either one or two club-lengths using the longest club in your bag, other than your putter.
In taking lateral relief, you will drop within two club-lengths of where your ball entered the penalty area. The size of a club-length will always be measured using the longest club in your bag, other than your putter.
After your ball has been lifted and replaced, you would always replace your ball on its original spot, even if it was blown by the wind or moved for no clear reason.