Sometimes you get that message, and the target is in fact far away. Other times you get that message, and the creature is right on top of you. Why? (Edit 12/12 - please note that this explanation is for PVE, not RVR. That's a separate set of issues that we're aware of.)
When we spawn a monster, we sometimes manually give it a Z-coordinate.
For whatever reason - let's say that the Z-coordinate is wrong - too
high. The player is at Z-coordinate 1000, and the monster is at 5000. The server determines that the monster is at Height 5000 and says "That
target is too far away."
The client incorrectly displays the monster on the ground, and the
players rightfully report it as a bug.
We most often see this with Stationary monsters (Archers) and point
spawns (which are manually placed and have an assigned Z-coordinate).
Note that as soon as a monster moves - the server will calculate a new
Z-coordinate and properly place the monster on the ground.
These bugs are fixed as soon as they come to our attention, so please, if it happens to you, submit an appeal and select the /bug option from the menu. Be sure to tell us the exact monster name, the zone you were in, a /loc if you've got one, and if this is a recurring problem with the beast in question. Oh, and the EXACT monster name ;)
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