  We study the Lambda_QCD/M_B corrections from subleading shape functions in
inclusive B-meson decays. We propose a natural and smooth interpolation from
the endpoint region to the full phase space, and derive expressions for the
triple differential decay rate in B -> X_u l nu and the photon energy spectrum
in B -> X_s gamma. Our results are valid to order Lambda_QCD/M_B for hadronic
invariant masses of order Lambda_QCD M_B and to order Lambda_QCD^2/M_B^2 for
larger hadronic masses. They allow a systematic investigation of the transition
between the separate regimes of the local and nonlocal expansions, and can be
used to study decay distributions in any kinematic variables. We consider
several examples of interest and point out that a combined measurement of
hadronic energy and invariant mass provides an alternative to the extraction of
|V_ub| which is largely independent of shape function effects and in principle
allows a higher accuracy than the combined measurement of leptonic and hadronic
invariant masses. We perform the expansion directly in QCD light-cone
operators, and give a discussion of the general basis of light-cone operators.
Reparametrization invariance under the change of the light-cone direction
reduces the number of independent shape functions. We show that differing
previous results for the lepton energy spectrum obtained from different choices
of light-cone coordinates are in agreement.
