Ah...the good ol' "What do I do with the flooring when I move a wall?" question. Yes, moving a door means moving a wall. The carpet should sit at the doorway where the tile will meet it and a schlutter edge/reducer can be used to help with the transition (you will change wood transition for a metal one = schluter).

As for how to get things even and level??? Oh...that answer comes once everything has been ripped apart and you look down. Only after everything is opened up can you make any plans about how to get things level and even and flat and all that fun stuff.

There is a reason why we use transition strips with tile. Tile edges are SHARP. Like cut your foot sharp. Those sharp edges can chip as they are abused. Chipped edges are even sharper than the regular tile edge. It is possible to get a straight edge without a transition between hardwood and carpet (so long as the hardwood is glued/nailed and not floating) but it is very hard/rare to get a transitionless edge between carpet and tile. Carpet compresses (it is soft and your foot sinks into it) while tile is rigid and unyeilding. It is hard to get these two materials to work properly together without a transition. It has been done (poorly I might add). It can be done (by an EXCELLENT CARPET installer who has the ability to come in a feather the edge up to the tile). But the question is: "Should it be done?" Most of the time the answer is "No".

Cancork Floor Inc:

I am using Schluter Jolly in the bathroom so using it for the transition may work well since it will have a matching look. Can you provide a photo or a link to a photo showing this? Wondering if I should just use a Jolly edge to cover the edge of the sharp tiles facing the carpet or if there is an entirely different Schluter transition piece I should be using.

Here's what I've used between carpet and tile.

Here's what it looks like before installation (general idea; this is a Schluter image I pulled from the web, while the above is not). The part with the trapezoid holes embeds in the thinset under the tiles and the part that curves up covers the cut edge of the tile.

Thanks for the images. I will plan on using this for my transition.