Am I reading this card correctly?

Professor X can cut through your D with Psychic Blast, but also incap you at the same time? For example on his first click, he uses the Telepath Special Power and gives you three clicks of damage and 1 action token.

They are both ranged combat actions, so I'm not 100% sure...

Props to whoever answers this...or should I say rep?!

It doesn't work like that... you can use either of the powers, but each takes an action (and therefore a token), and they can only be performed individually.

Well, yes and no.

True, Xavier can use Psy. Blast and Incap. at the same time but because Incap. drops your damage to 0 then you're really only using one of the powers, aren't you?

This is correct.
This is wrong. As Crow stated, PsyBlast and Incapacitate cannot be used at the same time as they are both require that Xavier is given a ranged combat action, and you cannot activate multiple powers with the same action.
It could be relevant if Charles tried to Incapacitate a foe with damage reducers and rolled a critical hit, which does increase the damage of Incapacitate - had Incap and PB been compatible, that 1 click of damage would have cut straight through the damage reducers. But as I said, they are not.

Thanks to everyone...these cards are difficult to interpret for me sometimes even when I'm looking at the PAC and Legion Rule Book!

He would be a lot cooler if he did both at the same time!

What if you were using Stunning Blow, which allows you to incap and still does all of the damage?

Would you still be able to have the damage penetrate because of Psy Blast?

No, the reason why has already been stated by Crow and Quebbster.

It's really not that difficult - powers granted by Special powers work just like if they were on the dial, with the exception that they cannot be used to meet feat prerequisites.
Generally speaking, if a power begins with the phrase "Give the character a close combat/range combat/power action", then it cannot be combined with other powers that start the same way. This is the case of Psychic Blast and Incapacitate - both require ranged combat actions.
If the power start with "when you give the character a close combat/range combat/power action", then it can tag along with another power that can be activated with an action of the appropriate type - this is why Flurry and Blades/Claws/Fangs work together, as B/C/F is activated when you give the character a close combat action, and Flurry is activated by a close combat action.
There are a few exceptions - most notably, Charge and Running Shot (as well as some special powers) grant you close or range combat actions as a free actions, so there is additional compatibility there. It can get complicated, but as long as you keep track of what powers require independent actions and what powers can tag along with other actions you should be fine... As long as you keep track of the action/attack distinction that is.