Questions from my first few games

This isn't quite true. Incapped hero don't have a hand at all, not a hand of 0. I think this hints at what the real answer is that it is all active heroes. Incapped heroes don't have hands or powers, both are abilities directly relevant to the card in question. The card doesn't apply to an incapped hero (it doesn't have powers or a hand), and only the active heroes have to discard.

EDIT: This is how it works on the Mea Computer.

But it very much applies to the remaining heroes, and if "all players" have to discard and some can't, the incap heroes basically cause a game loss just by existing.  (Hostage Situation works the same way, now that I read it again; somehow I thought they were different.)

and only the active heroes have to discard.  EDIT: This is how it works on the Mea Computer.

The what?  Other than whatever a "mea computer" is, do you have any other source to support that only active heroes have to discard?

The Mega Computer is the card rules and interaction engine for the upcoming video game of the card game.

The intent of the Mega Computer is to accurately play any situation according to rules, and the makers have worked a lot with GtG to make sure it lives up to their goal.

If Mega-Computer plays it that way it probably should be played that way.

The game does a good job of avoiding those kind of lockdowns, I doubt that Paparazzi is intended to work that way.

It sounds like the Mega-Computer is a thing all players could benefit from access to...any chance that it can be made accessible for us non-Sidekickers?

I don't actually know how to access it, I think it is part of playtesting the video game, but I could be wrong.

Mega Computer is part of the video game playtesting that strips away the graphical interface and lets you play games through a command line interface (e.g. play card 5; discard cards 2 and 7; hit target 3, then target 4, then in any order after that). It doesn't have a list of rules that you can just read through - the goal is to adjust the internal electronic rules to make them identical to how the game is actually played.

So, if someone says that it is played a certain way in the Mega Computer, that -may- mean that it is correct, since the Mega Computer is attempting to mimic the actual rules. Alternately, it may be wrong in the Mega Computer and we just haven't caught it yet. In this case, I suspect it is the latter (i.e. I don't think you are completely hosed if one hero is incapped)

True, I didn't say this is true, but rather what the Mega Computer does right now. When they setup the game, they sat down with GtG and said, "Ok, tell me exactly how this thing works." There are a few things not perfect, but that is why it is in testing. Right now, the Mega Computer will destroy the card if all active players discard a card. While I can see how this might not work for the wording (I can also see how it doesn't), I just can't picture this being true. Also, there are a bunch of cards that would fall into this category.

MigrantP did say he will post the some of the rules, especially regarding how to handle multiple effects and modifiers.