Original Wording

Kinetic Control: Vector can use Telekinesis. Opposing characters within 3 squares may be moved with Telekinesis as if they were friendly characters. Opposing characters that are moved in this way may be dealt 1 damage after the action resolves.

Errata
Kinetic Control: Vector can use Telekinesis. Opposing characters within 3 squares may be moved placed with Telekinesis as if they were friendly characters. Opposing characters that are moved in this way may be dealt 1 damage after the action resolves.

What exactly does "as if they were friendly characters" mean?
This means that Vector can choose an opposing character as A and then not have to make an attack roll and instead simply place them, provided that they are within 3 squares of Vector at the time he uses TK. (10-12-11, normalview)

Does this let me get past an opposing character's Stealth if it would normally cause the line of fire to be blocked?
No. The only thing that Vector treats the character as friendly for is placement, not line of fire or anything else. This only allows him to place the character without making an attack roll, not get around stealth or similar effects.(11-22-11, vlad)

Can my opponent use a damage reducing power on the 1 damage from this special power?
Yes. This special power deals damage and damage dealt can be reduced even though this is not an attack. If the damage was meant to somehow work around damage reducing powers, it would have been described as penetrating damage or unavoidable damage.

If I move an opposing character as if they were a friendly character, would that mean that they would have to roll break away if they are adjacent to one of their regular teammates (since they are temporarily friendly to me)? And would I have to avoid moving them next to an opposing character while moving them if I did not want the movement to end prematurely?
Telekinesis (and by extension, this special power) no longer moves characters; it places them. Since the characters are placed, there is no need to roll break away. (10-12-11, normalview)

Edited answers to reflect new Telekinesis wording. The answers didn't really change, though.

Added question about stealth.