Can a figure that has stealth that is sitting on the edge of hindering terrain target another character with stealth that is not in hindering terrain?

Like this:

[o=character in stealth]


HHHHH
HHOHH


X<----stealth fig not in hindering

Yes - that is fine.

As long as the line of fire does not cross hindering terrain, the person can be seen.

Page 11: If the attacker occupies a square of hindering terrain and the line of fire crosses the boundary line for hindering terrain without crossing another square of hindering terrain, the hindering terrain modifier is not applied for the square occupied by the attacker. This represents an attacker’s ability to fire from the edge of hindering terrain—protected by it, but not impaired by it."

Thanks for the quick replies, guys.

This may be the case but something about it doesn't seem right since stealth is supposed to block any line of fire through hindering. And I can't fire back.

It is somewhat confusing and I'm sure I'm not the only player who learned the hard way that it's legal.