kreynolds: if you don't think you can have cover against area spells like fireball, what is the point of having differing amounts of cover provide reflex save bonuses, and 9/10 cover providing the effect of having evasion? Reflex saves modified by cover are almost always going to be related to area effects, and evasion in particular is pertains to area effects.
PHB, p. 133: "Cover Reflex Save Bonus: Table 8-9: Cover lists the Reflex save bonuses for different degrees of cover. Add this bonus to Reflex saves against attacks that affect an area, such as a red dragon's breath or a fireball. For nine-tenths cover, you also effectively have improved evasion. These bonuses, however, only apply to attacks that originate or spread out from a point on the other side of the cover."
To all: That said, I can see how creatures might not provide cover for each other when it comes to area effects, if one is not directly behind. You'll notice that most of the example cases in table 8-9 seem to suggest standing right behind the cover. The exception is "behind a creature of same size" as one of the conditions for half cover. Here's the real question, in my mind: Do you need to be right behind someone (or a wall, for that matter) to take advantage of cover? If you have someone five feet away, the area effect may swell right around them and smack into you from all sides, unimpeded. By contrast, standing right behind someone protects you since they acts as a direct shield. If this is correct, however, then you could also argue that if you are behind a wall, but not right behind it, and an area effect sweeps behind the wall, that you get no cover because you are too far away from it.