I have a question:

If you are adjacent to a figure in stealth, and you have outwit, can you outwit one of the stealth figures power?

I, and others, always assumed you couldn't, because with outwit, you need a clear line of fire, which you don't have to stealth characters in hindering terrain. But recently, some one has said that he read somewhere that if you're adjacent to a character, you don't need to draw line of fire, since you're adjacent, which would actually make sense. So which is it? Any help would be greatly appreciated.

You have been playing it right. You need LOF even if adjacent.

Thanks, and I DO appreciate it

That is what we are all here for!