I'm not sure our leaders know what the actual "line" is because there isn't one. Will America MAD to save Europe? I do think it's possible that full-on WW3 engagement with non-nuclear forces could be possible with MAD serving to deter mutual usage and perhaps deter invasion of Russian/American mainland. That's wild speculation though. I base it primarily on the assumption that neither side wants MAD and will act to avoid it. The line for nuclear engagement (as opposed to chest-beating) reduces all the way back to a line drawn around the vital cities/industry/nuclear force deployments of a given country. Everything else might possibly be given up to avoid MAD which is an end-state. Maybe a game theorist can chime in.
The respective countries as a whole, yes. But individual actors in the war will still be driven to the brink, so you also need to count on countries not retaliating when a stray nuke detonates in their territory.
Yes Prime Minister: Salami Tactics.