I'm confused, can someone please explain in simple terms how this works?

Paraphrased:

Give Colossus a power action, choose an adjacent character 30 points or more and .

Make an attack roll using Colossus' attack value and a damage value of 2 on an opposing character 10 of fewer squares away that Colossus can legally target.

Deal that chosen friendly character 1 unavoidable damage, place it in a square that Colossus has a clear line of fire to and adjacent to the opponent you attacked.

If there is no legal square, deal the chosen character another 1 unavoidable damage.

Whoops, forgot the -2 on attack and damage on the character "thrown". Quebbster's may be easier.

Throw an adjacent ally at an enemy as if you made a TK attack with a light object (deals 2 damage to target). Thrown character takes 1 unreduceable damage, is placed next to target and gets -2 Attack and Damage for the remainder of the turn.

So the formerly adjacent ally to Colossus is not given an action token and can act after being thrown?

I guess so, but at -2 to his attack and damage. Can BCF be used?

Yes. According to this thread, V Boon would be one of the best choice (and one of the cheapest too).
Melkhor.

He can also 'throw' objects as per the normal TK option 3 rules.