Lua is the way to go. The stealth generator script should do the following:

• Hide all own team actors from enemies and AI within radius
• If an actor shoots or gets hit, show it for enemy and AI
• Show the actor for enemies/AI if an enemy actor gets close enough
• Always show the actors for own team and own team AI

Is this even possible? I think not. But maybe CC devs can do something about it? Mobile stealth generators would fit in CC universe.

Go download darkstorm and then learn to put requests in the requests forum.

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Wrong place, too.

I think he wants it to not make the user invicible. You do realized that unless the actor is specially setup, you need to run bounding box checks on every particle so they can get hit?

I did some theorizing, Darlos made an actor who's torso could be hit while invisible using some sort of frame trick, combine that with scaling attachables to 0 and disabling the cloak on damage should be a decent non-laggy workaround.
EDIT:
Oh, and make the jetpack 1 px, replace with a MOID attachable, and remove hand+foot groups.

I want the actor to be able to collide particles, bullets, debris, ground, other actors etc.. but be only visible to one team.

So when you play as team 1, you see him just like usually. But your friend/AI who is playing as team 2 can't see the actor (unless he shoots or collides the actor).

The question is: how to tell CC engine to NOT draw an actor for one team, and draw it for another? (and make one team's AI ignore the actor)

Impossible.

Calculate the screen area of each player and make a box surronding the controlled acotr bassed of that info. Stealth based off the acotr being in view.

This assumes no Q spying, either though lua or volutarily.