Ralackk: Are you using the mouse to control combat? Some spells that are ranged as well as the bow can only be shot in straight lines from yourself so if you want to shoot someone at range you must line yourself up with them first. As for melee you can hit the 4 squares that are around you but nothing diagonal.
Edit: I should probably add that while trying to cast spells that need to go in a straight line or using a bow if you have put the cursor all the way over in one direction and then try moving it to a different line of fire it will stay where it is, you will need to pull the cursor back to your character and then go from there to the new position.
This sometimes works, but it seems like, for some arbitrary reason, there will be a square that won't light up and become a target.
Not sure if it is always this way, but it has seemed to happen close to the edge of the battlefield.