Remove fear does not appear to remove fear. When being scared by a dragon, it was used twice on me, to no avail. Clarity was also used to no avail, but that doesn't seem to be supposed to remove it.
Remove Fear
Specifically, the items used were a Remove Fear potion and a Badge of Valor (I think that's the name) which was clicked on her directly. She wasn't un-feared and then feared. Simply nothing happened.
The aura on the dragon also activated on my when I was definately outside it. Maybe that's just one of those general problems that all circle area spells seem to share.
yeah auras are a little dicky because of lag effects. The position you think you are (where your client describes you) isnt always what the server thinks.
Should be fixed in v820.
(Remove Fear, not auras)