I find it odd that the Scout skill gives a negative modifier when a group is searching. I would think that the more eyes, the better chance at finding something. I don't think that a group that is looking for something would actively get in each others' way.

For me, the logic would be that the penalty only applies for none-scouting people. So if you have a party of four and one of the character is the "designated" scout (the other have other duties), then this scout will have a penalty of -3. If two characters are scouting (i.e. on guard duty) and the rest of the party (still, of four) are doing something else it would be -1 (+1 for the other scouting character for helping but also -2 for the two disturbing characters).

I know it is now not written like this now, but it would be a little bit more logic.

Except the sidebar is written as "when you and the other adventurers are scouting at the same time" you get a penalty. I would think it should be like Stealth except with a bonus rather than a penalty. Roll the lowest score and add +1 for each additional up to a +3.

Sorry, I accidentally wrote "now" instead of "not" in my last sentence.

My assumption is this is to balance with the Sneak Skill rules of rolling less skill dice with extra people, since that is the direct opposition to this skill.

Let's look at the break down here:
1. Equal size group of 4 players sneaking up on 4 orcs. They roll opposed, both with -3 dice.
2. Single player sneaks up to try and recon the 4 orcs. Player rolls as normal, and the orcs still roll at -3. In this case they are saying it is easier for a single person to sneak up on a group.
3. Party of 4 characters sneaking up on a lone orc sentry. Players roll at -3, the orc rolls at normal. In this case they are saying it is easier for a lone sentry to see a group sneaking up.
4. Single player sneaking up on a singe orc sentry. Both roll at normal.

Next question. Could both rolls also benefit from aiding? If all four orcs are on sentry duty, do they offset the bonus, and only get the penalty for each one NOT watching? If the players are all trying to sneak do they offset their penalty?

i just don't understand how more eyes to spot something would be a penalty, and saying that it is because your allies are in the way doesn't make sense.

For me it makes perfect sense.
A large group that travels is noisy and damn distracting. And if you travel through woods it's not sight that's your prime sense for detecting trouble. It's hearing (or sometimes smell).

For me it makes perfect sense.
A large group that travels is noisy and damn distracting. And if you travel through woods it's not sight that's your prime sense for detecting trouble. It's hearing (or sometimes smell).

It makes sense if we assume that one character is responsible for the scouting when you out exploring while all the other characters are doing something else. But, in my example above where two characters stand guard and two do something else, it start to make less sense. The two characters that are doing something else, sure they can disturbing and noisy (perhaps they are building a camp and repairing gear) but the two on guard, shouldn't they be able to work together (meaning that one of them make the skill roll and the other one is helping and the two disturbing characters gives a penalty). 

Good feedback here. The idea is as some of you mentioned that people in a group distract each other when scouting - it's better to scout alone. We'll have a think about this though and see it needs to be modified.

Bit late to the party on this one, but wanted to weigh in to also say this comes across odd and counter-intuitive to me, and would to my players.  If my players are setting up a sentry over their camp and are paranoid, they may want to have two people keeping watch.  If I turn around and say, OK, but you are now penalised, they will not be happy.  I see what is being attempted by the rule, but IMO this isn't the right implementation.  It shouldn't always be easier for someone to sneak up on four sentries than it is to sneak up on one.