Diala has a 4xp upgrade that lets her use a melee weapon as a ranged weapon. If she uses this ability with a weapon that also has cleave, who can she legally target with cleave.

So...

[T]he attacker may choose a different hostile figure or object that he could target for an attack. ( http://karrde.viluppo.net/ImperialAssaultWiki.html#Cleave )

Poses an interesting question. Theoretically you could target anyone within line of sight. You could take the tact that it has to be in range of your actual rolled Accuracy. You could take a fluff answer that since you're throwing it the cleave represents striking another enemy on the return path. so it would need to be somewhere in the "path" of the throw.

I think though that the actual answer is that the ability only allows the attack to be ranged, but you still have to be able to target the secondary enemy with the base+modification ability of the weapon itself.

I second AK's reply. The first attack is ranged, but unless you pay the cost for activating the power a second time, you'd have to go with a unit within your melee range, which could vary depending if you have reach or not.

I assume we're talking about "Dancing Weapon" here...

I disagree partially. In the point that there is no "second attack". Cleave is a Keyword, not an ability, it is something that just happens if the conditions of the attack are met, and in this case, the condition is if damage is done.

"Cleave" RRG, Page 8 reads:

If the target of this figure’s attack suffers one or more (damage), the attacker may choose a different hostile figure or object that he could target for an attack. The chosen figure or object suffers the amount of (damage) listed.

Diala's Dancing Weapon allows her melee weapon to make a ranged weapon attack. As long as she has LOS to a different hostile figure or object, she could apply the cleave damage to it.

Think of it as a ranged weapon's "Blast" where instead of hitting every adjacent figure or object, she instead hits just one more figure/object once as long as she has LOS to it.

We all know that thrown lightsabers are just like boomerangs....it's all in the wrist.

Can Diala have dancing weapon and the melee weapon she chooses to use dancing weapon on be armored gauntlets? I Have a player that chose to purchase the armored gauntlets with her credits and the dancing weapon with her XP. So this allows her to make a ranged attack with a "fist"melee weapon that has 4 different surge abilities and gets to roll 3 attack dice plus a 5th surge ability from dancing weapon with +2 accuracy and +1 damage?!?!

Can Diala have dancing weapon and the melee weapon she chooses to use dancing weapon on be armored gauntlets? I Have a player that chose to purchase the armored gauntlets with her credits and the dancing weapon with her XP. So this allows her to make a ranged attack with a "fist"melee weapon that has 4 different surge abilities and gets to roll 3 attack dice plus a 5th surge ability from dancing weapon with +2 accuracy and +1 damage?!?!

This is thematically weird but I don't see any reason that it wouldn't work exactly as you described.

there was an example in the inquisitor reveal article

So long as the cleave target is within the accuracy rolled for the original target, the cleave damage would be applicable.