My favorite squad is [currently lv 31]:

Front: Hero + Danatte
Middle: 2 Archers
Back: Pyremage + Cleric + Bomber Girl [she use a bomb that hits all enemies]

Front: Levin and Danette
Middle: Hero, Tricia, Oide
Back: Pyremage and Vitali

It has a Potential of 6,000+ with the members ranging from level 17-21. Which is nice, since my other close combat squads are in the upper 4000/mid 5000 range. The only thing it has trouble with is Shauna's units... everything else it pretty much mows down with ease.

Although my favorite Ranged unit is:

Middle: 3 Archers
Back: 2 Pyremages

Even though the unit only have a potential of 3500 or so, its simple and they clean up a lot of units. It's the only one that has changed very little from when I first made it.(The only thing I changed was adding an extra spot in the back rank.)

When the Hero starts hitting level 25 or so I noticed I start to get more 7+ space formations. Although I like keeping the 5/6 man around because the big units costs a ton to rip out. The only down side is that I find that the formations that offer such large spaces tend to have nasty decor on them. Like one makes you're unit explode in 3 turns...(I get the one a lot for some reason.)
I just wish squad formations worked different than randomly dropping rooms on you. (Like can can pay how many spaces/decor gets put on there.) Or at least give me enough locks for each room!

Well my favorite formation team is:
Front:Hero & Dannete
Mid:Odie & Layna(although she can oni b used in the last chapterT_T)(This might b a spoiler)
Back:vitali & Tricia & odie's fren the shooter fellow

my favorite squad positioning is hero danette and knight on front - schemestress layna and sepp girl in middle and cleric pyremage and that bomber girl in back all level 58 , i think my potential is almost 20,000 they work good

New to this game. But my Favorite formation so far is a defensive special with an offensive punch option.

It has three Redflanks out front. 2 Bards in the middle (one acting as leader) with one Archer. A Cleric and two saboteurs at the back.

I use the room with Serene Energy (forgot the name) and takes advantage of the Bard's great defensive modifiers.

It can retaliate from long range attacks and I can use the Bards' Divine Verse and Soul Psalm for Attacking.

quote mettaur_15

Amen to that. I wish we can choose the rooms ourselves instead of random drops .

You can. Just buy a Home Room of your choice ("Arrange" menu->"Design"->"Home").

These room have always five spots in an "X" pattern, which isn't exactly the best, but you can free one more space every 20 inspection levels.

Lord Median all by himself is pretty powerful Now I just need someone powerful to beat...

I have:
Front: Levin, Danette, Hero
Middle: Juno, Grunzford, Odie
Back: Vitali

But yes, I have trouble with Shauna too -_-