Hypersmurf
Moderatarrrrh...
But Hypersmurf disagrees, and we could both use the rules (or lack of them) to back up our arguement.
As has been pointed out, however, Favoured Enemy is no longer range-limited... and is explicitly defined as precision damage in 3.5.
So I'm afraid there's no longer an obvious definition, since we don't know if the FAQ applies any more.
In the 3.0 FAQ, Specialization was explicitly precision damage. If it's still precision damage, then Caliban's "special knowledge" theory doesn't work. If it isn't, he could be right.
But my understanding is that 3.5 hasn't said anything to contradict the FAQ yet... it just hasn't said anything to support it either...
-Hyp.