Your question is multi-pronged. Here's a part of the answer:
Glycogen is the storage form of glucose, it is a type of animal "starch" that is found in muscles and the liver. The body uses insulin to pack muscles with glycogen. Insulin takes glucose from the blood and converts it to glycogen right in the muscles themselves.
When you eat carbs, they are broken down into the constituent sugars by enzymes, and then when free glucose enters the blood, insulin levels rise in response, and the insulin then works to store the glucose as glycogen.
If for some reason you don't have enough glycogen stored (e.g. because you've been fasting or doing endurance exercise) then your body will want to store glycogen in the muscles. Your body will still want to fill up the tank, even if you don't eat any carbs. To get glucose in the blood in the absence of dietary carbs, the body uses a process called "gluconeogenesis" which is a process of converting amino acids (free proteins) to glucose. The body will use protein you eat preferentially in this process, or it will break down lean mass and tissues in your body.
Ketosis is a state in which your body manufactures ketones (a type of acetone) from fatty acids to use as a replacement fuel; it substitutes for glucose in the brain. But ketones are not, I think, involved in storing glycogen in the muscles.
Another hitch here is that free fatty acids are available to be used as fuel in the muscles for low intensity exercise at any time; so your body doesn't necessarily need a large store of glycogen to operate. "Fat burning" can take place instead.
In other words, I don't think the body breaks down fats and turns them directly into glucose. The body doesn't need to do this, since breaking down fats yields a fuel (fatty acids) that can substitute for glycogen in the muscles directly.
I suggest you read up on the metabolism on Wikipedia. Start here and follow the connecting links!
http://en.wikipedia.org/wiki/Metabolism