Hypersmurf
Moderatarrrrh...
So, treat as invisible or hidden, and require an appropriate Listen check to discover before allowing an AoO for an action that warrants it (pick up dropped weapon, drink potion, etc.). That would be going against the point of the feat though, imo. I think the intent of the feat is to disallow AoO's if they fail the spot check, period.
I think the point of the feat is to allow people to conceal actions, not necessarily in a combat situation. Example - The Princess Bride, where Vezzini distracts the Dread Pirate Westley long enough to switch the wine goblets.
It happens to have a combat application if you try to stab them while they're not looking.
-Hyp.