Questions is correct, the ATA increases Damage Dealt, PW lock the Damage Value, to different things.

Same thing would happen with Incapacitate, Quake and Blade/Claw/Fang : each time the locked value is the damage value. Damage dealt can be modified just fine. So pretty much every attack except "no damage" ones will work with this ATA.

from rules page 5
LOCKING
certain replacement values are referred to as "locked". Locked combat values IGNORE ALL other REPLACEMENT values and MODIFIERS. Whenever a combat value is calculated and a locked replacement value is applied to it, the locked replacement value is the ONLY replacement or modifier that can affect that combat value, and if a specific number is is locked, that number is ithe only possible result of calculation. Unless otherwise specified, locked values last until the end of the action that caused the locked value.

this was the locking rule. so as i previously said U-foes ATA doesn't add damage. it's always 1 damage from pulse wave.
have fun

Locking talks about the damage value, but the U-foes ATA changes to damage dealt. Two different things.

That said, damage dealt and damage value are two different concepts within the game- that is, one is not necessarily the other.

EDIT: I'm quick, WakandaMan is faster

I would have to say b/c PW is a range combat action, and the action allows a range combat attack, which in turn allows you to target characters at range. So PW just lets you target every character w/in LoF. By this progress of definitions the ability allows only adjacent targets for this scenario.

PULSE WAVE Give this character a ranged combat action; halve its range value until the action has been resolved. Draw lines of fire to every character within range in every direction; these lines of fire are only blocked by walls, blocking and elevated terrain

RANGED COMBAT ACTION: An action given to a character that allows it to make a ranged combat attack.

RANGED COMBAT ATTACK: An attack that requires an unblocked line of fire to a target up to the character’s range value

Characters are NOT walls, blocking terrain, or elevated terrain, so you can still draw LoF to every character within your half-range.
In addition, there is NO mention of targeting in PW's description...

Incorrect. I think this has already been posted, but just in case, from the PG:

Sharpshooter
This ability allows the character to make a ranged combat action/attack while based. If the attack targets, then targets of the attack must be the adjacent character(s). Regardless of targets, non-adjacent characters can be affected by the attack (such as would be the case with powers like Pulse Wave and Energy Explosion).

Thanks for the correction, I was going by the BN PAC.