Remedial Illumination

[chaco]

What happens when: in a nighttime scenario with a visibility of only 1 hex, playing with the smoke-illumination and hidden unit rules, you successfully fire an illumination mission, but the enemy force you illuminate includes hidden units in limiting terrain? 
Can you only spot those "hidden"units that are in clear terrain if your forward observers are within the 8 or 4 hex illumination range limitation?
Can you also see those that are illuminated, but are hiding in limiting terrain.
I suspect that the answer is, no in the second instance, but thought that I should pose both questions.