Pulled straight from the rules...
A Missile Launcher has an area of effect defined by the Circular Template. It must place the centre of the Template over the target miniature. The target miniature receives AP+EXP damage. Other miniatures affected by the Circular Template will suffer only EXP damage.
In a game I've had with other people (and I perpetuated the mistake), the template was placed away from the person being fired on. Sorry to anyone that I got that rule wrong with.