Prop wash/Wake Turbulence occurs the moment an aircraft gets airborne and starts to fly.
See
http://en.wikipedia.org/wiki/Wake_turbulence
It always washes down behind the aircraft in front of you. Key is, on take-off, when in group, have the heaviest aerie in front and the lighter ones behind. The heavier aerie will have a longer roll and the lighter ones can thus get airborne over a shorter distance behind it. The vortices only start once airborne and thus you will take off over them as a result. If the runway is too short, wait it out! 2 minutes should be safe.
On landing in close formation it is the opposite, the one that can put down closest to the numbers goes first (weight does not play a role here, just your touchdown point). Aerie 1 has to touch as close to the numbers and aerie 2 basically has to fly 'over' the path aerie 1 flew and touch down a bit deeper to miss the wake turbulance. Once again, if the runway is short stay in the air a bit longer
That is the theory
I flew into Big D's propwash just after Christmas on an approach at Aviators Paradise, Newspaper headlines flashed through my head at that moment - it is really something to be carefull of and you do not understand how dangerous it can be until you actually experience it.
When flying behind someone always stay at least the same level, but it is better to be higher than them.
Be wary of your own propwash too. If you do a 360 turn you can fly into your own propwash!
If I had to ask Thunderboy to print me a T-shirt for each of my propwash experiences he could retire, none of em were nice and the first thought to cross your mind is where am I aiming to ditch, if there is no time to aim the newspapers headlines flash in front of me!
PS: Please correct me anywhere if I am wrong!