I placed a Seperation Field Generator in the middle of the map and rules of that object include that if a figure carrying another figure enters the 3 square perimeter it drops the character immediately in the first square. However, I played an Ambush Bug with Passenger and carried up a figure to there but was told I'd have to drop the passenger. But I just looked at the PAC for Phasing and it says:

Phasing/Teleport (optional): Give this character a power action. This character may move up to its speed value. It automatically breaks away and ignores the effects of characters, hindering terrain, elevated terrain, and blocking terrain on movement. This character may not end its movement in or on blocking terrain.

Wouldn't a phasing figure ignore this since it ignores the effects of terrain?

No. Seperation Field Generator is terrain. It is an object (and if you are standing right on top of it, it counts as hindering terrain), but the effect itself is not any kind of terrain at all. It is an area effect, more similar to PW than a terrain type, that is constantly in effect.

Fixed it... I really need an edit button in the mornings.