MASTER OF DISGUISES: Give Chameleon a power action if no opposing character has line of fire to him. Replace him with a Disguise the same number of clicks from its starting line. For the rest of the game, any time that character is targeted with an attack, roll a d6. On a result of 1-4 that character is no longer a Disguise and is replaced by Chameleon the same number of clicks from his starting line and he becomes the target of the attack. This can't be ignored."

"ME THE WORLD'S GREATEST ARCHERY TARGET: When an adjacent friendly character would be targeted by a ranged attack, Bizarro Green Arrow becomes the target instead even if he would be an illegal target."

I choose Bizarro Green Arrow as a disguise, and replace Chameleon with him. Then a friendly character adjacent to Bizarro Green Arrow is the target of a ranged attack. Bizarro Green Arrow becomes the target of the attack. I roll for Chameleon's trait, and roll a 1-4.

Question 1: Bizarrow is still replaced, correct? I'm assuming he is, as Chameleon's trait occurs after Bizarrow's, meaning the opposing character would end up targeting Chameleon. I only ask this incase the 'even if he would be an illegal target' supersedes the replacement, but I'm doubtful and cannot find a similar ruling or example anywhere else.

Question 2: Same situation, but before replacing Bizarrow with Chameleon, can I give Bizarrow an action token to use:

"BIZARRO RANGED COMBAT EXPERT: When Bizarro Green Arrow is the target of a ranged attack, you may give Bizarro Green Arrow an action token to modify the attacker's attack value by -2, its damage value by -2 or both combat values by -1."

If so, will the modifiers remain after the replacement.

Yes. He is still replaced. The check for an illegal target has already occurred at that point.

The moment that Bizarrow is targeted both effects are triggered simultaneously.
The order of resolution is determined by the active player, the player whose turn it is, most likely the attacker.
He decides if Bizarrow gets to make his roll before or after Chameleon's.
If he does end up being replaced, though, the effect would end as it has no specified duration to state that it remains.