Finally got around to trying this skill, and as i guessed, nobody else has, because it doesnt work. Firstly, i can cast this on MYSELF. Secondly, it seems to have unlimited range after i cast it on a target. Third, i can cast it on neutral enemies like Ratmen. Fourth, it doesnt work, never have i taken damage or SP loss from my protected target being attacked.

I'm just casting it on myself and training it that way until its max, i'll try it again at 200.

Protection doesn't work against non-melee sources and you have to be close to the target when they're being hit in order for t to have effect. The target can stay while they are far away but it won't activate unless your in a couple of tiles. I will take a look at the damage reduction/transfer but this block of code hasn't changed in a very long time.

Yeah it says melee only in the description and i tried hanging back maybe 8 tiles, was on the same screen. 

I just retried it at a range of 2 tiles but the skill is trained to 152/200 now, i am losing SP and reacting to the hits but im not actually taking damage. The description makes it sound like im supposed to take damage but instead i only lose SP? From a range of 8 tiles my target took several hits though, i didnt seem to absorb anything. Maybe the white indicator should vanish when im out of range ?

Having a range/chance to protect info might make the skill more appealing.