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Just want too ask, does it mean i can stealth even while being observed w/o the -20 too the roll?
(Ranger) Hide in Plain Sight (Ex): "While in any of his favored terrains, a ranger of 17th level or higher can use the Stealth skill even while being observed."
(Shadowdancer) Hide in Plain Sight (Su): "A shadowdancer can use the Stealth skill even while being observed. As long as she is within 10 feet of an area of dim light, a shadowdancer can hide herself from view in the open without anything to actually hide behind. She cannot, however, hide in her own shadow."
No change to stealth rules, other than being able to do so while observed.
However, I don't see a -20 penalty being relevant.
Stealth: "If people are observing you using any of their senses (but typically sight), you can't use Stealth. Against most creatures, finding cover or concealment allows you to use Stealth. If your observers are momentarily distracted (such as by a Bluff check), you can attempt to use Stealth. While the others turn their attention from you, you can attempt a Stealth check if you can get to an unobserved place of some kind. This check, however, is made at a –10 penalty because you have to move fast."
The first sentence is negated by HIPS. The -10 penalty is for making the stealth check quickly (since the foe is momentarily distracted).
Personally, I think using HIPS should be treated the same as a stealth check from cover or concealment, so the -10 penalty shouldn't apply. IE: you're not distracting them, you're stepping into smoke or shadows or something that a normal person couldn't hide in.