It's not just targeting either that requires weird voodoo magic, sometimes when you want to pick something up, the character does an pick-up animation but doesn't actually pick it up, you have to manually move closer and try again. Happened to me in the cave on that table with the arrow heads with nearly every single item there. Nearly as if reach character think he has is not actually what the actual reach is.

And placing area of effect spells in crowds dead-center is also hard work.... because of the lock-on and targeting thing mentioned... would be neath if we could disable lock-on for such spells (if they collide with enemies while cast that's fine.. but we should be able to target anywhere we want)