Most of it is pretty straight forward, but I'm wondering about order of operations and technicality. First, with "when an opposing character... activates a power...", when does that damage occur? Is it before the action (possibly losing the power, which it sounds like) or after the action if finished (which the script doesn't support)?
Second, when a character "is given an action to activate a power of that color"... what does the definition of "activate a power" include? Specifically, is that when they use a power (eg. if I choose grey and they use RS from a hammer or a SP) or only when they activate a power that they possess?

...anyone?

Part 1- Right when it activates.. so they may lose the power. And even if they dont lose it after the damage, I dont believe they can continue the action.. but Im not sure.

Part 2- might need someone else...but... I believe these focus on actually possessing the power color. Specials or effects that grant those powers wont count. But that can be clarified later.

Id like to know also. Just built a team with them on it

It happens immediately when they declare the action. If they lose the power, they still get to take the action (unless the power specifically says it can't be continued), but with their new combat values.

I don't think that's right... if they take the damage and no longer have the power, they can't use said power and I've never seen anything that said otherwise (aside from a couple of SPs like an OW that even lasts after FigA loses said power).
I figured the damage would happen immediately but I was looking for clarification/confirmation before I did the wrong thing in a game.

And does nobody really understand what GD intended with this or are the oranges still waiting for an answer? I couldn't find a single post about this power with all of my searches so I'm not really sure it's even been brought up as it is such a random power that will seldom work.

They've already been given the power/close/ranged combat action, and they continue to take it. Like if you lose Flurry you still make the second attack or if you lose Hypersonic you can finish your movement.

Umm... no you can't. If you lose Flurry or HSS mid-action, you can't make the second attack or finish your move respectively. I'm not sure who told you differently, but that's never how it's worked that I've ever heard of.

The rules themselves, backed up by a post on heroclix.com specifically outlining it.

Fair enough, that was a change to Flurry... when these came out, I admit, I was still catching up on 5 years worth of rules changes as I had just come back to the game. However, that is unique to Flurry, not every other power. To quote the sentence before your quote, "If you compare this wording above to the 2012 wording, you’ll see that we’ve removed the line that tells you Flurry will stop working if the power is lost mid-action." That change only applies to Flurry, not every power... unless you can point me to another place to reflect a change in the last 5 years.

Now that you point this out, I do recall there was an update to Flurry, but I didn't realize it was this drastic as I was working on all the other updates as I mentioned, but I'm glad I re-read this as I didn't realize it allows you to use SE on the second attack, even if you lose it. :D

You misinterpreted what the change was and how it was implemented.
Flurry used to tell you to stop if you lost the power. THAT was unique to Flurry.
Now it does not. That's the only change to Flurry. So the action finishes even after the power is lost, like every other power.

You only need to be able to use the power when the action is given. After the action is given, it doesn't matter if you have the power, you complete the entire action.

From the Core Rulebook:

If a power or ability is countered or lost, all game effects of that power or ability immediately end, but any actions already in progress are resolved normally.

If the action was activated then they would complete it, but any combat values used would be on the current click.

Huh... so "all game effects of that power or ability immediately end" mean that the power wouldn't have an effect (eg. if you were Perplexed before the action completed like this, you wouldn't get that stat boost), but you would still follow through with PB if that was the action taking place, even if it was lost (meaning you'd still get the ignoring damage)?

Also, was that a change in the last few years or was I taught wrong (and had everyone I played with play wrong)? I'm guessing it was a change as everyone I played against before my break (including those at conventions and other judges) played that if a power was lost (eg. Flurry/HSS after hitting a Mystic), you couldn't complete the action... but there have been little wording things like this that have been misunderstood before, too.

Lets say you chose Brown, a character that is given an action to use Poison would still get to complete the action of Poison. Same with Perplex, the character would still get to perform the action and Modify a combat value. The big difference is that Poison is contained within its action, while Perplex has an ongoing effect. Since the power is lost, the effect of Perplex immediately ends as well.

Hope this helps Flurry and Hypersonic Speed were powers that specifically stated they ended. Even if this power existed then, only powers that specifically stated they would end when lost like these two would be effected.

In this particular case, I was thinking more because it says when damaged, the effect of Perplex ends, but I was also thinking with the intention that they Perplexed themselves beforehand and didn't get damage... like if the color chosen was red, the opponent Perplexed themselves, and used RCE. But your answer more than satisfies the intent of my question as well, even though I didn't say it very well. Also, you point out a good point that it's not just attack powers, but any power that activates... one point I didn't pay enough attention to because I was caught up on the "what if you lose it" part.

Yeah, that makes so much more sense! It's the only two that really would have brought this up in a regular game (as any other power would have only taken damage after the fact with most any game effect before now). It looks like HSS got changed some time in the last few years, though, as it doesn't state that now... I'm glad this is both something I missed (not something I've been playing wrong all these years) and I think I'm almost past all the changes that have happened so I'm just about caught up. LOL! Thanks to you both (and especially to FlatFootedBoy for bearing with me and not insulting my response )

Oh! And I forgot that my second question wasn't answered yet:
When a character "is given an action to activate a power of that color"... what does the definition of "activate a power" include? Specifically, is that when they use a power (eg. if I choose grey and they use RS from a hammer or a SP) or only when they activate a power that they possess?