Fable,
My Hero only has 3 points in Bow - Accuracy. I just killed a Gargoyle using Normal Arrows and in the 2 shots to kill it the damage was 89 and 113. I have also 2 shotted Earth Elementals with just normal arrows.
Grim, what was your character's agility? What are the stats on the bow?
I was using a ranger's bow, with a point in accuracy. Used fire arrows. No damage during hits. Two-thirds of shots missed. Agility was around 20 (I split most of my stat points with Survival).
