Strength definately affects ranged damage, at least with a bow. You can pull the string tighter making for a faster, more deadly arrow. And I've watched my ranged damage increase over levels with the same bow. Perhaps it doesn't affect crossbows, hence my problem. My Strength modifier is greater than my Crossbow Expertise modifier.
I think I'm going to use the editor the move those five skill points over to Bow Expertise. I'm not happy, but I don't want to waste them. I only wanted the crossbow skill as a backup so I had a super-strong, if slow, ranged weapon to help pick off higher-leveled monsters.
I'll try testing the skill like you mentioned as well.
Thanks for the sugestion!