Yeah, there seems to be some confusion here between 'transparent,' 'unreflective,' 'non-absorbant,' and 'invisible.'
Something that's transparent can't be seen because light passes right through it. This would pose a massive problem for vision, because you need to capture light to see things. This is what would lead to the scenario with an invisible 'van' and visible occupants. Some sort of rule or principle would define what constitutes the 'van,' and the occupants wouldn't qualify, so you couldn't see the van but you could see its contents. Transparency is also the most likely explanation for being inside the van and being unable to see the controls/occupants, if all were rendered equally transparent. A transparent object may or may not be able to emit light from a source (eg, brakelights); I'm not really up on my physics for that, but I suspect the brakelights/headlights/etc would still work (as would any dash lights, which could be kinda freaky). Of course, it's hard to imagine a physical object which is both transparent and possesses the necessary properties to generate light, so, dunno.
Unreflective objects don't reflect any light, and non-absorbant objects don't absorb any. Bending light away from/around an object effectively gives it both properties. Having the first without the second would give you a pitch-black object with a moderate-sized shadowy region about it. Having the latter but not the former would give you a very shiny object, moreso than a mirror (but maybe not 'reflective' in the sense you think of when you think of a mirror, because the light might be reflecting at all crazy angles unless the surface is very smooth). Having either property would make conventional vision for that portion of the electromagnetic spectrum impossible, but hey, this IS magic.
Invisibility is the state of being non-detectable within that range of the spectrum. There are a wide variety of ways to accomplish this; in Ghost in the Shell, we see 'invisible' characters who (unless I misunderstand -- I've only really watched the SAC series, which doesn't go into explanations) accomplish this by simply editing out their existence from other people's perception in realtime, a form of mind/perception control. A godlike technomancer could do this, and would be invisible to anyone with cybereyes and to machines. (Note that a godlike technomancer would probably be able to remotely activate devices which have a wireless connection but aren't set to broadcast. This can already be done to a certain extent using some really crazy electronics, but you need to know certain things about the device you're targeting) A mage could do this and would be invisible to anything with a 'mind.' Alternately, you can have a realtime chameleon effect, where the reflective/absorbant properties are adjusted quickly to perfectly simulate the surrounding environment.
Or you could just define a state 'Magically invisible,' and give it the properties 'cannot be visually detected from the outside.' I like this solution, and it's what I use, unless I'm feeling sadistic or humorous enough to do some of the other things described in this thread.