I play with a PS3 Controller and have absolutely no problems targeting anything... and I use Mode A... I have Target only enemies engaged on so when I am in a fight either solo or party and I take out my weapon [Left and Right on my d-pad] Targets all mobs aggroed to the pt. [Up and down] target all party members. I also use my arrow keys for extra targeting options as well, I've set the left and right arrow keys to target all engaged enemies and I have my up and down arrow keys set to select only attackable mobs and it always starts with whats closest. Otherwise when I'm not in active mode my {left and right} buttons on my d-pad cycle everything... I can out target anyone with this set up.
Just in case someones interested
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Targeting Mode A
Config - Target settings - Target only engaged enemies [ON] (only happens when in active mode with targeting mode A)
D-pad {left and right} (Non-active: selects everything) (while Active: Only Targets Engaged mobs)
D-Pad {Up and Down} (not in a party: Only Selects me) (in a party: Cycles through party members only)
Keyboard Arrow keys {Left and right} (Target Nearest Engaged Enemy) Next is set to Right and Previous is set to Left
Keyboard Arrow keys {Up and Down] (Target Enemy "this targets Only attackable NPCs") Next set to Up and Previous set to Down
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Also for added bonus I can switch with my controller from ALL to Friendly to Enemy just by Hitting the Auto Run button which I have set to L1 while at the same time pressing the mini menu button[Square], the main menu button[Triangle], and the select button[X]
So thats
Auto Run[L1] + one of the 3 functions
L1 + Square = All Mode
L1 + Triangle = Friendly Mode
L1 + X = Enemy Mode
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Honestly I have so much personalized control with my targeting people often ask me what I play with and when I tell them 90% PS3 Controller 10% Keyboard they honestly think I'm lying to them.
Seriously they fixed the targeting and I have the same target set up as in Final Fantasy XI. I just don't think anyone of you guys have taken the time to really study it and just want a well-fair patch to make it even more easy mode then it already is... Gamer sense people... go get some.