Under Target Mode B:

When I am in "Enemy" Target mode, I am able to target friendly targets if they are on my screen. If I have no other friendly targets on my screen, then it works correctly. I have video showing many instances of the problem. Out of the 8 pt members with me at this time, there was one other who had the same problem.

Video: http://www.youtube.com/watch?v=92RqXTPZXfs

Details:

Platform: PC
ISP: ATT Uverse
Type of Internet Connection: Optic Fiber
Internet Connection Speed: 100.0 Mbps
Date & Time: 7/24/11 11:43pm pst
Game Time and Date: 22:00 3/3
Frequency: Very Often. As long as there is another "Friendly" target in front of me.
Character Name: Neko Yanagi
Race: Mi'qote
World: Mysidia
Class/Skill Rank: Archer R47
Physical Level: 50
Area and Coordinates: Happens everywhere, moreso in cramped areas with many friendly targets (Like Dungeons)
Party or Solo: Solo and Party.
NPC Name: None
Monster Name: None
Steps:
#1: Press "X" on my game pad to target while in "Enemy" mode
#2: Target lands on a friendly target
#3: I use left or right D-pad to select Enemy target. It will not go to any other friendly targets again unless I lose my target (enemy death or esc button) and have to re-select a new target.