While playing Star Wars: Imperial Assult, we had a strange situation where an Imperial had two Rebel figures down the field. One of them was clearly not within Line of Sight because one corner of the Imperial figure could not draw a line to two of the Rebel figure's corners. So the Imperial decided to target the other Rebel.
But that's when we remembered that figures block line of sight. If the other Rebel figure wasn't in the way, the Imperial player would clearly have line of sight. But because this Rebel is where it is, it would appear that a Rebel that the Imperial doesn't have line of sight to is somehow blocking line of sight to another figure.
Is this a correct interpretation of the rules? Realistically, it makes no sense, since the only reason a figure would block line of sight is because it would be hit by a blaster bolt instead.