Ah crap. yet another question. If you stand behind a character using stealth, can LoF be drawn to you even though they are technically there?

Thanks again.

And by hindered movement would that mean i had to stop immediately in the next square, or that my movement is halved?

Stealth has no impact on this scenario; that power only activates when LOF is drawn TO the character using it.

All that matters here is there is one character blocking LOF to another character.

Depends. Did they start moving in clear or hindering terrain? If clear, the movement would end; if hindering movement is halved.

As always, normalview has the right answer. The point of my post is the Duck is hiding, so how is he blocking line of fire to the guy behind him???

Hey W.I.T., I think I know where your misunderstanding is coming from.

E E E E
E O X .
E A . .
E . . .

You are looking at this diagram and the rules for intersections and it seems to me that you think that the intersection rules means that we should treat the character as going through one of the squares of the intersection - square O in this case. But this is not what happens. We do not treat the character as crossing the O square. The character is crossing the intersection and the intersection is neither of the squares, it is its own thing. The rules for intersections then tells us how to treat the intersection. And since the least restrictive terrain is clear, the intersection is clear. You never move through the O square, so the rule of occupancy is irrelevant here.