I just was playing through some of the campaign with the multiplayer toons we get and managed to line up 6 kobolds with Burning Fingers. I hit them, 2 had armor, one had a reflect, and they all rolled well enough to block the damage. When the effect hit the 2 with the armor had the effect applied to them and I had it hit me, then it ignored the other 3 who were targetted, no effect. Not the end of the world, but annoying. Edit: A copy of the applicable battle log; Drilan shoots a tiny cone of flames Drilan moved. G'foz tries to block the attack - and succeeds! Goblin Grunts discarded Missile Block. G'zok tries to block the attack - and succeeds! Goblin Grunts discarded Missile Block. M'zik tries to block the attack - and succeeds, turning the attack back on the aggressor! Goblin Grunts discarded Reflect Missile. M'qil took 1 Fire damage. G'gru took 1 Fire damage. Drilan took 1 Fire damage.
The three that blocked it aren't affected by the damage or the attachment; that's how blocks work. I don't see any armor triggering in the log. Are you sure you had six goblins in the cone?