I ended up on this thread while trying to understand "mi lon luka mi e telo pona" on Toki Pona Dave's site (http://sites.google.com/site/tokiponadave/
I found myself struggling with the concept of "lon luka mi" as (apparently) a transitive verb, describing the action that "mi" was doing to the "telo pona". This doesn't make much sense to me, given what I learnt about "lon" from Lesson 6 (http://bknight0.myweb.uga.edu/toki/lesson/lesson6.html
The only use of "lon" with "e" that I could see was "mi lon e sina", meaning something along the lines of "I bring you into existence".
Given that "X li lon e Y" means that X brings Y into existence, it seems natural to me that a construction like "X li lon Z e Y" would see Z as an adverb to the verb "to bring into existence".
So going back to "mi lon [luka mi] e telo pona": this seems to parse as "I bring [in a my-handly manner] the good/clean water into existence". You can see why this left me scratching my head somewhat..
I've since fathomed that "mi lon luka mi e telo pona" was written to mean something like "I place my hands where the clean water is / I wash my hands". For the reasons explained above, I believe that this is an error.
The lessons give the example "mi telo e luka mi" for "I wash my hands". Given that, I can't see what's wrong with "mi telo e luka mi kepeken telo pona".