heres whats happening from me
On mode A using my D-pad I start cycling to the right and it starts with whatever target happens to be in the center of my view. So if I have the center of my camera pointed at someone 100 yalms out it will start at that target because it always starts at the center before it allows you to cycle to the right. same happens when I cycle to the left. However since I have Direct targeting toggled "on" whenever I press X which is my Accept/Confirm button it targets whoever is close to me regardless of camera position. Seriously I was targeting in combat and out of combat, in uldah and in a highly mob populated part of La noscra. When you begin to cycle using keys or buttons it always starts with the center of the camera, consider this perhaps there is an invisible cross hair that may be conflicting with the targeting system but it works 100% of the time.
Try it, go to ul'dah and point the center of your camera on someone far away you will target them first, then cancel target and point the center at someone else.thats how regular targeting works.
Also some notes:
If 2 or more targets share the center right (which is cycle next) will highlight the first target slightly to the right regardless of distance, Left (which is cycle previous) will do the same regardless of distance.
Pressing X to get the closest first target to your character (again with Direct Targeting ON) will do the con shape with precedence over targeting that you describe, however normal targeting will highlight whoever is at the center on your camera regardless of distance from your character.
so thats
X or [Accept/Confirm] with "Direct Targeting" ON --- Cares about who is the closest to your character (This will allow accurate target cycling from a con shape starting at the first target depending on Left or Right key presses)
Mode A [All] Normal Cycling [Left:Previous / Right: Next] --- Cares about who is in the center of your screen/camera regardless of distance. (This also allows for accurate targeting if the target you want is at an obscure distance while ignoring whether the target is close or far)
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Both can be used in conjunction during certain situations and honestly now that I know this from doing further research I have complete personal control over the targeting system and will now speed up my switching and selecting with the D-Pad immensely.