by Anubis » Sun Jul 13, 2014 5:48 pm
Hello Proto, and welcome! Glad to see you're enjoying the game.
Bard songs and Paladin auras (and certain items) target nearby allies. This means the radius is up to 1 square wide, around the caster. In order to heal your whole group, you would have to position all 6 party members together, with your Paladin occupying one of the two center tiles. Note that this is only necessary during combat, outside combat Aura of Healing will always affect the whole party.
You can set a default party formation in the game world by accessing the Combat Formation screen (G key). In-combat, you can change a character's position by left-clicking on any of the 8 tiles available to the party. (When combat is finished, the party will revert to the default formation).
Hope this is helpful, going to mark this report as solved since it is about an intended game mechanic.