" Any line of fire drawn to this character that crosses hindering terrain, including a
square of hindering terrain occupied by the character, is treated as though it crosses blocking terrain."

Ok so this leads me to believe that you can still close combat attack a player with stealth since a close combat attack does not require a line of fire to be drawn. Is this correct?

Correct, close combat attacks work just fine. If they didn't, there would be almost no way (short of very specific TAs and a Feat) to hit a Stealthed figure.