Hypersmurf
Moderatarrrrh...
I don't think that is correct. I think you may be reading to much into the term "negated".
I don't think I am, but neither do I think it's clear enough either way that it's possible to reach a consensus within the text

We need the Sage to comment, so one of us can rant about his opinion being worthless

Anyway, if I were running a 3.5 game, Fort. Armor would protect against Flaming Burst, but not Wounding.
-Hyp.