A group and I have been thought we read this rule and have been playing with it for a while now and just wanted to verify. Is it possible for a hovering character to shot over another grounded character to hit another one behind it.
EXAMPLE
A Hovering character with a range of 10 wants the shoot Green Arrow who is 10 squares away but Green Arrows team mate is in front of him. So could the hover character shoot over Green Arrows teammate and hit him?

Nope... sorry. You must have LoF to your target, and figures block LoF in most cases. You CAN shoot out of adjacency, as long as you are a flier, the target is within range, and you have LoF to said target.

You were most likely basing this off of the rule that grounded figures only block LoF to and from other grounded figures. The key to understanding that rule, however, is understanding what grounded means:A hovering figure on the ground is grounded, which is why the ruling does not give hovering figures an extra ability to draw LoF.

For both LoF rule and updated glossary entry, consult latest FAQ, Rulebook Corrections.