Q: Is there a penalty for casting spells into melee?
A: Yes, casting spells into melee incur a -4 penalty to the casters attack roll, regardless of the targeted defense. Ranged spells are considered ranged attacks and are covered under Cover rules on page 305 (and clarified in errata below)

Quote:
Q: Is there a penalty for casting spells into melee?
A: Yes, casting spells into melee incur a -4 penalty to the casters attack roll, regardless of the targeted defense. Ranged spells are considered ranged attacks and are covered under Cover rules on page 305 (and clarified in errata below)

Does that include spells that are area spells. For instance, if I am being attacked by three guards, and I cast a Concussive Wave, am I at -4 to hit them all since they are all in melee with me? Is is this only for targeted spells?

Q: Is there a penalty for casting spells into melee?
A: Yes, casting spells into melee that target specific creatures and not an area incur a -4 penalty to the casters attack roll, regardless of the targeted defense. Ranged spells are considered ranged attacks and are covered under Cover rules on page 305 (and clarified in errata below)

Does this affect divine casters as well as arcane? Currently Adaptation: Arcane Accuracy is listed as [Arcane] only.

I realize this conversation has been had, but I don't really understand why a spell targeting Discipline would suffer a penalty for melee...but this is across the board, divine casters should have a way to mitigate that penalty.

The errata should be clarified for the above.

they have their own talent for that in Codex of Heroes

Devotion of Accuracy: This blessing may only be applied to spells that attack Avoidance; you ignore any penalties associated with casting into melee.