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I love using VATS for melee (especially for punching things). The nostalgic sound effects, kill cams, and slow motion -- it's all very badass, but it can feel clunky when trying to target a powder ganger right in front of you, but you need to cycle through three bloatflies, two geckos, and a mine three kilometers away just to finally highlight your intended target, only to realize you have a zero chance to hit and need to get closer, so I 'fixed' it. All this does is reduce VATS range from 5k to about 350. This ensures if you can activate VATS you will never have a zero percent chance to hit with fists or a melee weapon. No more VATSshady sands shuffle because you are just out of range -- or cycling through redundant targets!
Yes -- unfortunately this means you are limited to point-blank range with all other types of weapons in VATS. It's still pretty much ideal range for most shotguns and those HOLY **** VATS TAKE THE WHEEL moments but that's about it. So take it or leave it. Eventually, I would like to be able to write an NVSE plugin to detect what weapon you are using, but that is not within my level of expertise at the moment.
It's just a simple .esp made with Xedit.
If it does not appear to be working as described, place lower in load order. It's possible for some esp's to revert the changes back to vanilla if loaded after this mod.
Random addition: Try kamikaze + hot blooded (or heavy handed if not going crit) and spiked knuckles for a great early VATS fisticuffs build