What rights if any do I have to prevent termination if I am on probationary status as a new hire do I have the option of appeal?

You need to consult with an employment lawyer with experience in public sector issues.

Can I legally be fired or have my pay cut?

I don;t see anything illegal here. You would be working your "regular" job during those hours so what's the difference - I don't see any. Not worth...

What should i do? can i be arrested based on her word? what rights do i have?

That's one of the hazards of working in your field - clients making such accusations.

Do I have any rights? How is this still allowed?

Mr. Freeman has provided an excellent answer.

Can my boss deduct 40 percent of my pay because he feels like it? I am a 1099 employee.

Assuming you are properly classified as an independent contractor (in which case he is not your employer), then this is a contract matter. Either...

I totally disagree with the prior answer. If he works then he is entitled to be paid. Period.

So now my question is what can I do? What should I do? And can I do anything? I am aware of the at will policy...

You may also have a claim against the accuser for tortious interference with employment.

What are my legal rights as far as getting reimbursed for my remaining PTO, do I need to repay the relocation expenses?

PTO is generally governed by the employer's stated policies. Relocation expenses are a matter of contract or the employer's policies.

When will this happen?

Your question as submitted is impossible to answer.

Am I legally obligated to make 8hrs worth of work while on salary

Your submission is unclear. generally, an employer can deny time off.