Effect: Each target sees the image of a Small or smaller object in your hand or in a square in the burst. The image lasts until the end of your next turn.
Given a pixie who is 6" to 1' tall, creating the image of a cardboard box in a square in the burst, can the pixie hide in that image?
In a more generalized form: what is the nature of the image created?
The fluff suggests that the manifester is planting the image in the minds of surrounding people. This therefore suggests that the image appears real or, at the very least, acts to occlude the square.
How should this work?