Beyond the Supernatural 1
Page 48 (Psychic Abilities-Professor Lazlo's observation)
Remember, this is only Victor's thoughts on the matter, and since he's a western "psychic" his understanding of the material is going to be influenced by western thought on the matter, not the facts of "Feng-Shui".

Page 49 (Potential Psychic Energy)
"...Perhaps it was the famed, Oriental masters of Zen and mystics, or their Hindu cousins, who first recognized and understood the potential of psychic energy. They learned to merge the mind with the body; to direct and focus the inner self, the "Chi," as an athlete might train and build his body. Once the inner self was conquered, it could be directed in many ways; so it is that we have the legendary Zen masters, fighting monks, martial art masters, and mystics, each with a different focus and ability."
This comment is so uneducated and wrong that it isn't even funny. First of all, Kevin makes too much of "Zen," showing us that he has no real concept of Zen Buddhism. But my personal favorite is the constant reference to "inner spirt" something completely different than the actual concept of Chi that it isn't even funny. You can discard the majority of this paragraph (everything after the third sentence, that is, everything quoted above here). Oh, and for the record, the Greeks and Indians have the earlier recorded references to the concept of Chi.

Pages 128-130 (The Theory of Victor Lazlo)
Again, these are all flavor text based on Victor Lazlo's theories (from my own research, it's obvious that Lazlo was an incompetent researcher and got too many things wrong, it's not surprising that he got sucked into a Rift, he didn't know what he was doing).
Ironically, the discussion of Chinese Dragon Tracks is fairly accurate in so far as the actual references to it, however, the conclusions drawn by Victor about the comparison of Dragon Tracks and Ley Lines is somewhat infantile and doesn't make much sense when he starts discussing the philosophical differences. Keep in mind that Victor's theory calls for both to be "Geo-psychic" energy, defeating his own concept of PPE (which makes sense in terms of psychics, but not magic). If we further look at the concept of P.P.E. (which I'm sorry to say was the stupidest name for magic energy yet seen in a game), we see that it represents undeveloped psychic energy. While this makes sense in terms of psychics and "normals" who have (lamely, but logically) focused this energy into specific "powers" or "focuses," it breaks down when you get to magic for the simple reason that it would mean all magic is undeveloped psionic potential. It further breaks down when it is compared to Chi, since the energies involved are completely different. Chi has nothing to do with psychic potential (in game terms, however, the Japanese do have some interesting thoughts on the matter), it is the life energy, or perhaps more accurately, the focus of life energy in living and un-living things. The concept of Chi lines of the earth is ironically logical and illogical at the same time, depending on whether or not you consider nature (for want of a better term) "living."

Page 130 (Magic is the utilization of PPE in its purest form).
Here is another reference to Dragon Tracks supposedly (this time) being magic. Which further illustrates the conceptual differences which arise from having such a system, since it contradicts the bit from page 40 about how Chi is "Inner spirt" that has been focused (i.e. ISP). Ironically it's almost as if ISP is derived from PPE which is in turn derived from Chi in BTS, with Chi later being labeled as ISP or PPE, depending on the author's whim at the moment.

Beyond the Supernatural 2
Pages 19 (Vanishing Evidence)
Don't you love how Palladium defines a term and then forgets what they originally defined it as. The vanishing act shouldn't be called discorporation for the simple fact that it's a term already used in Mystic China to describe a specific martial art power.

Pages 26-27 (Professor Victor Lazlo observed)
This is reprinted from BTS-1, page 48.

Pages 27-28 (Victor Lazlo described PPE)
Oh look, another new Victor Lazlo crack-smoking appearance. This time we're treated to a theory that PPE is the ability to learn (*Shrug* that's what Victor's rambling boils down to, you start with a lot of potential to learn, and lose as you "burn your PPE"). Let's not forget the "negative emotions" section, since it's quite reminiscent of Lucas' Force...to the point I wonder what would happen if Yoda and Victor Lazlo ever met.

Page 29, PPE & Psychics, 6^th paragraph
This is reprinted from BTS-1, page 49

CONVERSIONS for N&S to BTS2
N&S characters don't change much (as of yet, that may change if the Arcanum book ever comes out) in BTS2.
For BTS2 characters wishing to learn martial art styles, the costs are similar to those for Rifts characters.
1. The character has to have or be able to learn HTH Martial Arts. [Stays]
2. The character must be able to learn Boxing. [Stays]
3. The character must spend the required Other skills to learn Hand to Hand Martial Arts, if they don't already have it [Stays]
4. The character must spend 4 Other skills for a non-Exclusive style or 6 Other skills for an Exclusive style (or exchange two
secondary skills per Other skill needed). [In order to keep it simple, the character loses ALL Occupational Weapon Proficiencies, and Half their Elective skills, unless the Half the Elective skills is less than 4, in which case they must spend 4 Elective Skills (or substitute 2 Secondary skills per Elective skill needed) for a Non-Exclusive style. For an Exclusive style, they lose All Occupational Weapon Proficiencies & Physical Skills as well as All their Elective skills, unless they have 6 or less Elective skills, in which case they must spend 6 Elective skills (or substitute 2 Secondary skills per Elective skill needed).
5. Regardless of skills available, no BTS2 character may learn more than one martial art style. Standard Exclusive limitations apply.
6. The following Revised Ninjas & Superspies and Mystic China martial arts are not Exclusive: Aikido, An Yin, Ba Gua, Bak Mei, Bok Pai, Ch'a Ch'uan, Chao Ta, Chi Hsuan Men, Chin-Na, Choy-Li-Fut, Gui Long, Han Yu, Hsing-I, Lee Kwan Choo, Li Chia, Liang Hsiung, Mien Chuan, Moo Gi Gong, Pao Pat Mei, Sankukai Karate, Shan Tung, Shih Ba Ban Wu Yi, Snake Style, Tai Chi Chuan, Taido, Tang Su, Te, Tong Lun, Triad Assassin, Yu Sool, and Zanji Shinjinken Ryu
The following martial art styles are considered Exclusive (meaning they must be the first style learned by the character): Drunken Style, Fong Ngan, Fu Chiao Pai, Hsien Hsia*, Hwarang Do, Isshin Ryu, Jujutsu, Kuo-Ch'uan, Kyokushinkai, Monkey Style, Ninjutsu, Pao Chih, Shao Lin, Sumo, Tae Kwon Do, Thai Kick Boxing, Tien Hsueh, Wu Shu Tsung**, Wui Wing Chun, and Xing Chiao.
*Note: Hsien Hsia, if taken, can be the only martial art learned by that character.
**Wu Shu Tsung is listed in its description as being a requirement for Chinese espionage agents. This note should either be removed, or a reasonable solution should be found which would make the style available for espionage agent O.C.C.s ( I recommend additional loss of skill programs).