As to formulas being "updated" in the new row, since all the copying occurs after the shift, the old row (now one index up from the new row) has already had its formula shifted, so copying it to the new row will make the new row reference the old rows cells. A solution would be to parse out the formulas BEFORE the shift, then apply those (a simple String array would do the job. I'm sure you can code that in a few lines).
At start of function:
ArrayList<String> fArray = new ArrayList<String>();
Row origRow = sheet.getRow(sourceRow);
for (int i = 0; i < origRow.getLastCellNum(); i++) {
if (origRow.getCell(i) != null && origRow.getCell(i).getCellType() == Cell.CELL_TYPE_FORMULA)
fArray.add(origRow.getCell(i).getCellFormula());
else fArray.add(null);
}
Then when applying the formula to a cell:
newCell.setCellFormula(fArray.get(i));