I was playing in a tournament Saturday. I played (among others) Marvel Girl, with Telekinetic Reach. My opponent had Pete Wisdom. We were set up like this:

1 O2

Where 1=Marvel girl, O=object, and 2=Pete Wisdom

All terrain is clear. There are three squares between 1 and O. O is adjacent to 2. Marvel Girl is on her TK click. Pete Wisdom is on his stealth click.

Here is the feat text:

Now, can Marvel Girl TK the object at Pete Wisdom?

The judge ruled that she cannot, because of the text that I have put in bold text.

What are your thoughts on this?

I would rule that objects being picked up by TK do not effect line of fire. This is how you are able to pick up a character in front of your TK'er and move them around the board. If you pick up the object, it doesn't effect line of fire to Pete Wisdom in the same way.
Here it is from the HC Q&A:

I would agree... once the object is picked up... there goes Wisdom's stealth... isn't it like picking up an object that a character is using for stealth and bach him with it... or pretty close.

More than anything, that answers the question.

If the TK'd item or person blocked the line of fire then you would never be able to TK anyone or anything anywhere but the opposite direction of where it is placed...

and that would be lame beyond belief.

Sometimes you have to go further than the PAC.

I don't have the exact quote, but for all three versions of TK the object being TK'd does not affect LoF.

Double Post

This is actually in the FAQ (under Telekinesis):

"Q: Can a character use Telekinesis to make a ranged combat attach with an adjacent object when an opposing character with Stealth that is standing on that object?"

"A: Yes, the character with Telekinesis may use that object to attack that opposing character. The opposing character does not block line of fire to that square when using the object the opposing character is standing on."

and the next question and answer adds more clarity:

"Q: Does the character or object being moved with TK impact the line of fire for where it can be placed?"

"A: No, the line of fire can be drawn after the target has been "picked up."