Um... it technically doesn't do anything according to the rules.

and the rules for TK option 3 do not give any range, nor does Colossus have range of his own. Obviously it's supposed to be 10 like all of the other TK abilities, but it doesn't say that.

He can use Telekinesis, which gives him the range. He just can't use option 1 or 2 of it. That might have been a clearer wording.

What!?

Go read the Legion rule book..

Option 3 says:
Attacking with an Object
To attack with an object using Telekinesis
(as shown in Figure 23), give the
character a power action. The character
may target a single adjacent opposing
character, a single opposing character up
to 10 squares away, or a single opposing
soaring character up to 5 squares away
with a single object. If the character is
not soaring and is adjacent to one or
more opposing characters, the character
must use the object against an adjacent
opposing character. The character must have a clear line of fire to the target. The object
used as a weapon doesn’t affect the line of fire.
Range is counted from the object, not the attacker.
Regardless of the attacker’s damage value, the target of a successful attack using a
light object is dealt 2 damage and the target of a successful attack using a heavy object
is dealt 3 damage.

So throw your ally 10 squares, do 2 damage (since they are a "light object"). They can attack in the same turn but with a -2 av and they take a click of damage..

Also by this wording someone with a 4 range would be able to hit 10 squares away with TK, hence why TK is and always has been somewhat under-rated since you can hit someone for 3 10 squares away regardless what your stated range is..

How does this do nothing?

the only parts of TK that gives you range are options 1 and 2, and technically that's not range either, it's just a certain number of squares away. option 3 words it so that you should technically be using the range of the figure

thank you for that Demon, I see the problem was that WizKids sucks at organizing their rules, I don't think that part of it should be split up from the ability card

You can throw/tk a character 10 squares to hit someone for 2 damage. The thrown character can attack now, with modifiers. Throwing the whole 10 is slaughter for the character being the Ball. Seems pretty easy to understand to me.

yet one more thing that WK could do better..

No worries..
Hopefully it cleared up the problem and you're good to go!

One more thing players could do better...

As mentioned, it's all reasonably clear, just depending upon the player to know the associated, existing rules for TK.

The only thing I'm unclear on is whether the thrown character gets to make the other attack (with the -2 modifier to AV and Damage) before or after taking the click for having been thrown.

I do like the way that the -2 modifier seems to be to the base Damage, encouraging us to throw someone like Wolverine who can make a BCF attack which (as a replacement value) could still potentially deal 6 clicks of Damage.

After. Resolve the entire Fastball Special (including dealing damage to the "ball") before you make another action, such as letting the "ball" attack.

I can certainly live with that. It's just presumed that the "ball" will make its own attack - which is reasonable, but just not stated. In a game where Falcon/Archangel/Beast's Charge and then continue powers hit (at least I believe they all did, though I'm less certain with Beast) unfortunate rulings that shoehorn in a breakaway roll... I figured it's a good idea to ask.

What happens when you throw the person at a soaring character? Technically, they're falling a really large distance to the ground. I wonder if they will institute the change of elevation damage for the thrown figure...

I'm expecting it'll just be an additional click of unavoidable damage as per the final line in the power description. Of course, if the character has Leap/Climb wouldn't that grounded square still be considered adjacent to the Soaring character, so the second unavoidable click wouldn't be called for?

I think the bolded clause applies to a soaring figure - no square is adjacent to the target.
Two things just occured to me:
1) Range is no longer halved for TK attacks against soaring figures, so Colossus can toss a teammate against a soaring character up to 10 squares away.
2) If you assign Colossus Swingline, the soaring figure will gain Earthbound when hit by a Fastball.
Could be a nasty trick up your sleeve in the right situation.

I don't know... assigning two clicks of damage to your own figure just to try to hit an opposing piece doesn't sound like a fair trade to me.