Hi Sam,
Wow. Great questions! I have not thought of flying spell as a combat method. So these are off the cuff answers that will deserve more consideration going forward.
The spell "flying" lists its granted speed as 10 mph * level. What does that translate to in combat terms?
Flying in Elthos is more like bird flying than 'Super Hero' flying. The person who penned the spell was a Shaman and it was originally designed to allow someone to fly like a bird, wearing in fact feather cloak to do so. And in fact, originally, the flying occurred in 'The Other World' and was mostly spiritual. Eventually enterprising wizards managed to bring the spell down to earth, so to say, and so we have Flying as the Guild teaches it today. Consider yourselves fortunate. It is one of the more difficult mystic powers to control, and is problematic when it comes to trying to use it in combat.
Here's the breakdown by level:
1st level: Can only be used to loft into the air and fly/float like a bird, mostly at the whim of the winds, and without much control. Go up, fly along the wind currents, or against them if possible, but that's difficult, and then land. A fumble means you land badly (1d6 damage). Ow. Note that wearing armor while flying gives you a -1 per Dexterity Modifier to your chance of Fumbling. So don't wear armor, that's my advice. If you do it works like this:
DXM 0 = no problem
DXM -1 = on your Success Roll you fumble on a 1 or 2.
DXM -2 = on your Success Roll you fumble on a 1, 2 or 3.
DXM -3 = on your Success Roll you fumble on a 1, 2, 3 or 4.
2nd Level: Same as above, but you can go twice as fast. Nice. You can also begin to wear armor with less risk. Add 1 for each DXM above to lessen your chance of fumbling.
3rd Level: Same as above, but you can go three times as fast as 1st Level. You can now wear armor with less much less risk. Add 2 for each DXM above to lessen your chance of fumbling. In this case DXM -3 means you only fumble with a 1 or 2. Not bad. Still no combat though.
4th Level: Ok, now you can do some acrobatics, spins, change direction, loop-di-loops, and you're probably no longer in danger of killing yourself on landings. You can also bash people, which on success (AL vs AC) will knock someone 10 feet, and on a critical do nd6 damage where the n = the mph /10. However, you will also take 1/2 damage yourself when you do damage to someone from bashing in flight. Note, however, that if you are wearing armor it absorbs damage. Carrying a shield probably a good idea for bashing. So to be clear here's how Bashing works in terms of damage:
At 10 mph = 1d6 damage
At 20 mph = 2d6 damage
At 30 mph = 3d6 damage
At 40 mph = 4d6 damage
At 50 mph = 5d6 damage
At 60 mph = 6d6 damage
Remember you take half damage. But then again at higher levels you have more Life. Maybe it evens out. Also you can choose to fly UP TO the maximum speed at a given level, but you don't have to. A 5th Level Mystic could choose to fly at 10 mph for a Flying Bash in order to minimize damage he may take to himself.
At 5th Level: You can now do some fancy stuff, and even hover around a bit and sword fight in the air against other flying opponents, as well as people on the ground, but with a -1 AL because at this point you are still not used to it. On the other hand you can more easily swoop down and get back slashes, if you're kinda evil like that. 😉 On a positive note, people find it harder to hit someone who is flying by, and so you get a +1 AC when engaged in aerial combat. You can not use missile weapons from the air as you are still too unsteady.
At 6th Level: Ok, now you're really damn good at this. You can aerial combat: shoot missiles from the air without penalty, drop rocks like a dive bomber, and sword fight with no AL minus, and you get a +2 AC. Wow. Not bad!
All of which is probably too powerful. I'll think about it. I may just stick with, "and you can fly like a bird, and you can't combat". If I do allow Combat Flying, it may become a separate spell with a higher MLP to learn.
Related question: Does the ability to fly alter the options available to a character engaging in melee combat in any way? How would attacking from the air work? Would hovering above a target's head grant a flanking bonus?
Yup, I should say so. For one thing it probably affords you a +1 or +2 on Surprise attacks. You fly up in the sky and hope the enemy does not notice you. You swoop like a hawk and bash or stab or drop a rock on them. And hope to fly away so you can laugh another day. As for hovering for a flanking bonus... hmmm... I'm going to go with no on that for now. I don't think so.
Always remember however, that flying is risky. If something goes wrong, you can die. Fast. So aerial combat can kill your character when, say, he is doing a Flying Bash, but fumbles. Woopsie. Rolling double 1's on a Flying Bash at 40 mph means you do 4d6 * the third roll. On average that is 49 points of damage. In the worst case it is 288 Life Points! Ouch. So be careful out there!!
Ok... them's my thoughts.
What do you say about them apples?