*So what if it wasn’t the Federal government that owned the land, but rather Citizen B, let’s say Rush Limbaugh owned the land.*
I believe Rush would lose his land to Bundy.
http://ngdlaw.com/articles/adverse-possession.htm
In Arizona, a person is entitled to legal ownership of property if his occupation of the property is hostile, actual, open and notorious, exclusive and continuous for a period of 10 years.
there is also this:
http://en.wikipedia.org/wiki/Land_Revision_Act_of_1891
which amened this:
http://en.wikipedia.org/wiki/Preemption_Act_of_1841
"There are several steps an owner can take to prevent a neighbor from gaining a legal claim to your property.
1. Grant Permission
One effective way to thwart a possible claim for adverse possession or easement by prescription is to give permission to use a portion of your land. To be safe, put the permission in writing and obtain your neighbor’s signature as an acknowledgement.