[1] The interaction of Saturn's inner magnetosphere with its moons ranges from the addition of significant quantities of gas, dust, and plasma, causing significant consequences for the dynamics and energetics of the entire Saturnian magnetosphere, to the simple absorption of plasma and energetic particles by the icy moons with non-electrically conducting interiors. The interaction with these moons is complex with the contribution of many physical processes, depending on the geometry of any plume, the structure of the atmosphere, and its interaction with the surface and interior of the moon, the latter by induced fields. Our ultimate goal is to understand the complexities of this interaction and its temporal variations, especially at Enceladus. In this paper we use magnetohydrodynamics (MHD) code for addressing the flow around obstacles that are simpler than the Enceladus interaction. These simulations both help us understand the interaction with other icy moons and prepare us for the simulation of the flow around Enceladus. The processes involved include ordinary collisions, impact ionization, photoionization, and charge exchange. We examine a series of simple canonical interactions before we later apply our simulation where the multiple processes are occurring simultaneously with asymmetric geometries. We apply our 3-D MHD model to simulate the interaction between the Saturnian corotational plasma flow for the following cases: an absorbing body having an insulating surface; ion pickup via photo and impact ionization from a spherically symmetric neutral cloud; charge exchange with such a neutral cloud; and ion pickup at an insulating, absorbing body with an atmosphere acted upon by the sum of the three ionization processes. In addition to validating the model and obtaining a deeper understanding of the consequences of each interaction, we can immediately make some conclusions about the Enceladus interaction. We find that the magnetometer data are most consistent with the surface of Enceladus being absorbing and insulating, rather than the surface being reflecting and electrically conducting. For the conditions in the corotating flow at Enceladus, the perturbation to the plasma flow produced by photo/impact ionization is an order of magnitude smaller than that produced by charge exchange. Moreover, the perturbation to the magnetic field Bz component by a spherically symmetric mass loading source alone is an order of magnitude smaller than that observed in the neighborhood of the plume. Thus, the perturbation observed in the magnetometer data is primarily due to the mass loading in the plume, which is primarily ion-neutral charge exchange. The geometry and source strength of the plume are investigated in a following paper.