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I was trying to save Hullrik's cow Arabelle from a marauding band of Xvarts (in the Lonely Peaks north of the Naskel Carnival) but I couldn't kill the Xvarts fast enough so I cast Cure Light Wounds on her to give me more time. The feedback said that Arabelle had been healed but her health bar stayed the same. Poor Arabelle died (and I missed out on some experience and a boost to my reputation).
I think we need a new patch to resolve this problem.