How Does the Close Wounds Spell (SC) Work?

[druid zook]

It seems as if the wording of the spell "close wounds" (SC) is open to two interpretations:

1) The spell cancels all damage dealt by one attack, whether spell, critical hit, or coup de grace, while healing 1d4+5 at the same time.

2) The spell knocks off 1d4+5 points of damage just dealt.

(Assuming CL 5th.)

The 1st option is really powerful for a2nd level spell, but it arguably saves lives. How do you here interpret the spell?

[Deeds]

My interpretation with example:

Opponent knocks my ally's HP to -13.
As an immediate action, I cast 'Close '
Wounds.'
1d4+5 is rolled and my result is 6.
My ally's HP is now -7 and we cheat death.

Edit: that being said, tell your DM pronto before picking the spell. If you don't, you're almost certainly gonna stall the game as the Spell Compendium is dragged out for reference.

[Rebel7284]

2.

It just heals damage, and can apply before the dead condition sets in. I read the whole prevent part as flavor about HOW it works.

[Necroticplague]

Two. It prevents the damage by essentially healing it while it occurs. It's too small to completely prevent anything more than a minor papercut, but it's something.