I put all the rules and character information in the OP.

With your current character build, Channel Energy only differentiates between the living and the dead.

Re: AoOs, you can move from one tile that an enemy threatens (is in melee range of) to another tile that that same enemy also threatens without provoking.

Can melee attacks be executed diagonally and does Lightning Flash count diagonals for adjacency?

"All creatures" seems to imply the spell would damage allies, too.

Yes to all questions.

Also, Burning Hands takes this shape:



Also, you can no longer move North as the rogue is in your way.

Flavor text
It is surprising that the goblins have gotten such a gain on the party. No worries, just take one out, and step back. Less is lost when in crude numbers against numbers.

TheKebbit: >Violently beat the goblin to the northeast of me.

"Yea, scum, prepare yourself for an old-fashioned Dwarven skull-thumping!"

Attack: d20 = 4. Miss.
Calling upon your proud heritage you clasp your gnarled staff and swing at the goblin. Unfortunately, vigor is no substitute for training and the creature easily deflects the strike with his rusty buckler.
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CaveCricket48: > Melee the goblin to the North of me.

Attack: d20 + 1 = 12 + 1 = 13. Miss.
Like a carpenter correcting a loose nail you bring your hefty hammer down upon the goblin's head. It clangs loudly on his helmet, leaving a hefty dent. The murderous creature is rattled by the force of the blow but otherwise unharmed.
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Foa: >Rapier E, Move 1sw 3w
It is surprising that the goblins have gotten such a gain on the party. No worries, just take one out, and step back. Less is lost when in crude numbers against numbers.

Attack: d20 + 2 = 14 + 2 = 16. Hit.
Damage: d6 + 1 = 5 + 1 = 6.
With calculating precision you thrust your rapier directly into the goblin to your right, snaking your blade under his ribcage. Withdrawing your blade with a swift motion you disengage, ready to take up a more tactical position. Seeing his chance the other goblin makes a stab at your withdrawing form.
Goblin AoO: d20 + 2 = 6 + 2 = 8. Miss.
Keeping your eye on your other assailant, you are able to spot the attack and deflect it with a flash of your rapier.
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TorrentHKU: > Attack the one to the West, if successful Cleave the one to the North as well.

Attack: d20 + 4 = 17 + 4 = 21. Hit.
Damage: d12 + 4 = 8 + 4 = 12.
Blood still dripping from your face and arms you swing your heavy axe with tremendous force, splitting the chest of one goblin.
Cleave Attack: d20 + 4 = 1 + 4 = 5. Miss.
Muscles corded with exertion you attempt to cut straight through to a second victim, but your blade is caught in its sternum and it takes you a moment to break through completely. The second goblin dodges your next attack and you are left off balance by your wild swing.
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Nighthawk: > Attack the goblin beside me to the east with a single kukri strike.

Attack: d20 + 5 = 19 + 5 = Crit!
Damage: 2d6 + 4 = 5 + 3 + 4 = 12.
Your knife moves like a flash of lightning in your hand and before they can even react you stab your target through the eye, killing it instantly.
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Two goblins circle around Tavor, attempting to bring him down before he is able to muster another mighty swing.
Attack 1: d20 + 2 + 2= 11 + 2 + 2 = 15. Hit.
Damage: d4 = 1.
Attack 2: d20 + 2 + 2 = 3 + 2 + 2 = 7. Miss.
Attacking him from opposite sides one goblin slashes the fighter's thigh with his crude blade while the other is stopped by the finely wrought chainmail.

Another goblin makes a leaping charges at Deimos, gripping a hatchet in both hands.
Attack: d20 + 2 = 17 + 2 = 19. Hit.
Damage: d4 = 2.
Catching the rogue unawares with the wild assault, the goblin leaves a nasty gash across the elf's forearm.

The last goblin stabs at Reine, spittle flying from his mouth as he utters unintelligible obscenities.
Attack: d20 + 2 = 1 + 2 = 3. Miss.
His rusty knife shatters on Reine's tough armour.



Health:
Kebbit: 8/8
CC48: 13/15
Foa: 11/12
THKU: 12/13
Nighthawk: 8/10

Could I get a list of who is who?

Kebbit: The wizard Grundlegar
CC48: The cleric Reine
Foa: The ranger Cassandra
THKU: The fighter Tavor
Nighthawk: The rogue Deimos

Also: Cleave only works on enemies that are both adjacent to you and to the target of your first attack.
The two kukri attack listed for the rogue is two attacks- meaning you would apply that roll to one target twice or once to two different targets.

• Grundlegar, Reine, Cassandra, Tavor, Deimos, Goblins

Becomes

• Kebbit, CC48, Foa, HKU, Hawk, Goblin

Anyone have a preference towards what should be done?
Someone take the one next to me.

> Double Kukri Strike the goblin to my east.

Why is it always goblins, again?

Move 1w; Two Shot (1ne 1n; 1ne 1e)

Rapid Shot requires a full round action; that is to say you cannot move and fire twice in a single turn.