Okay, let me run this one around the track... again, I'm sure...

Say I have a character with Outwit, who is locked in close combat with my one of my opponent's characters. On a roof just a few squares away is another one of my opponent's characters. I'd like to Outwit him.

Can I? My understanding with the status abilities (Outwit, Perplex, Prob) is that line of sight was required, which is different from line of fire. Going by what I see in the rulebook and on the PAC, someone locked in close combat can use those abilities on someone who is not adjacent, as long as he can legally target that character via line of sight.

Am I right or completely and utterly off-base here?

You are correct: Outwit is not affected by adjacency. As long as you can draw line of fire to someone (but remember this is affected by figure bases, though not in this case due to elevation), you can outwit them.

However, I have to point out that there is no difference between line of fire and line of sight - the terms are used synonymously. However, I do believe only Line of Fire is a correct game term.

Hm, good point. I think it does appear one or two times in the Icons rulebook, but it's notable that Line of Sight isn't in the glossary.

Ya there is no such thing as Line of Sight.
Powers like outwit and perplex are not attacks so you can use them out of adjacency, that is, on a fig you are not based with when you are based by another fig, range and line of fire permitting.