If I had a super-power like Candice I wouldn't let a potential murderer know my real location.
She can create all these images, but she over-lays the one she's using over her real location!
Think about it, she could just sit back in the corner and make the fake her from there. That way when Sylar tried to do her in with the cup, he would have whiffed nothing and she could laugh at him.
He had no super-hearing or other abilities to help isolate where she really is.
On a side note, I think Sylar has the virus, and the company originally released it and just keeps the anti-dote from people they lose control of.
I also think the blue light in the first episode was Peter using the Ice power. He could effectively freeze the water already in the air, and it would go forward like a shockwave.
