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When you attack and fill up the circles, the impact extends from the enemy and your other team members can chain their attacks if they are close enough. If you manage to get all 5 of your characters to successfully chain on one enemy, you pull off a chaos combo that deals extra damage and can hit surrounding enemy units.
All weapons have an impact rating ranging from "XS" to "XL." XS weapons have the highest ATK values, but the smallest impact potential and XL is the opposite.
Unfortunately not with the dub for Aedis. If you own the game already I'd consider the undub. Japan often spares no expense with the talent for their VA's. Of course it helps to have a rich anime culture whereas we get the Hollywood flunkies or relatives of the localizers in some cases lol
Aedis have JPN audio if I am not mistaken. And yes, if you successfully hit every target by pressing X during battle the circle will be bigger and depending on your weapon's range the circle may be even bigger. XS, S, M, L, L being the best.
Also, this game gets challenging over time and then gets absolutely frustrating at times.. Haha.