Oracle is a spontaneous, divine spellcasting class. She has a greater number of spells per day than a Cleric, and can cast without preparing in advance; but, she has a narrower list of spells that she can choose from. She is the divine equivalent of a Sorcerer (whereas a Cleric is comparable to a divine Wizard).

Be mindful that Oracle isn't especially tuned for making ranged attacks (though she isn't terrible); as you level up, if you find that ranged attacks are your focus more than spells, you may want to consider multi-classing into a prestige class that gives you a higher Base Attack Bonus while continuing your spell progression (Eldritch Knight is a good example). On the other hand, you may decide that you want the Oracle's neat higher-level class abilities (Revelations, etc) more than you want a couple points of extra attack bonus.

Abilities:

Key ability: Cha.

Your key Ability score is Charisma, since Cha gives your spells a higher save DC, limits the highest level of spells you can cast, and grants you bonus spells per day.

For ranged combat, you also need a high Dex. Dex also improves your ability to dodge attacks, and increases your Reflex save (resist fireballs, traps, etc).

Con gets you more hit points, and a higher Fortitude save (resist poison, being turned to stone, etc).

Str won't be very important to your character, except to carry gear.

Int grants you more skill points.

Wis gives you a higher Will save (resist mind-affecting spells, etc).

Skills:

Look through the class skills to figure out what interests you. You should have max ranks in the Spellcraft skill. You can also choose cross-class skills without a big penalty in Pathfinder, so you should skim through the entire skill list to see what's available.

As a rule of thumb, I usually pick a number of skills equal to the number of skill ranks I get per level. For example, if you get 8 skill points per level, you could put max ranks in 8 different skills. If you decide you want more skills than that, you can split up one "ranked skill" into two "half-ranked" skills, and put a half-point in each every level. This isn't a hard-and-fast rule, just a way that I've found of making the decisions and the math much easier.

Feats:

The Extra Revelation feat is an Oracle-specific feat lets you choose an additional optional ability from the list for your chosen Mystery.

Since your character is heavily involved with ghosts, I think the Ectoplasmic Spell metamagic feat from Advanced Players' Guide would be appropriate.

Beyond that, feats which enhance your spellcasting will be the most effective for your character; since you are doing ranged combat, you will have to split your feats between ranged and spellcasting. I would recommend reading through the table at the beginning of the Feats chapter (both in the core rulebook and the Advanced Players' Guide) to get a brief description of what each feat does; there are a lot to choose from.

If your group is more familiar with 3.5 than with Pathfinder, remind them that you get a feat every 2 levels, not every 3 (so you should have 3 character-level feats at level 5).

For your players' specific choices:

P1 has the right idea by picking a SAD class in the Druid, but has his dump stats off kilter. While dumping Strength, even down to 6, can be managed (especially for a Druid who should be able to travel light, as Druid defensive buffs are excellent and they are well-equipped to not need tons of rations, etal), he shouldn't put his racial +2 into it.

Given his array, I would have him dump Strength and Charisma -- Dexterity is needed for initiative, and Intelligence for skill points, so you can't dump either it turns out. Wild Shape is also more beneficial for P1 than he thinks -- Natural Spell comes at the same level as Wild Shape itself in PF, so he gets casting-while-shaped essentially "for free". Along with that, he should put that +2 racial bonus into Wisdom and bask in the glow of a +4 starting Wisdom bonus.

P5 is also on the right track with focusing on archery -- the casting of the Ranger is not strong, and with two full Vancian casters in your party (namely, the druid and the wizard), his casting won't be needed for much, while the Dexterity-based skills will be quite useful in a rogue-less party. Furthermore, his choice of Charisma for a dump stat is a reasonable one -- it's not nearly as severe a dump as in P1's case, and many Rangers don't rely upon Handle Animal the way Druids do.

Regarding concerns about healing

Having played a Druid in a party where that was the sole access the party had to healing magic, by the way, I would strongly recommend your party obtain Wands of lesser vigor if you are willing to waive the [evil] descriptor on the spell or Boots of Earth (if Fast Healing 1 is enough) if they aren't, and give one to the druid and one to another character -- Druids can't convert to healing spells as they get Summon Nature's Ally instead, and spell slots are precious especially at lower levels.

In general:

You are right to be somewhat concerned about this...

The more relevant sum in this case is of attribute modifiers -- if it's less than 0, D&D 3.5e (and presumably PF (Pathfinder) as well as it's derived from D&D 3.5e -- if it's not a rule there, you can always port the 3.5e rule to your game as a houserule) has a rule that allows the player to reroll for their stat array.

In your case, it comes out as follows:

• P1: +3, +2, +2, +0, -2, -3 = +2
• P2: +3, +2, +2, +2, +1, -1 = +9
• P3: +3, +2, +2, +1, +1, +0 = +9
• P4: +3, +2, +2, +1, +0, -1 = +7
• P5: +3, +0, +0, +0, +0, -1 = +2

Which means that all of these arrays are acceptable, at least by the sum-of-modifiers rule; however, the +2 arrays are indeed non-trivial to work with.

However, character class and construction has much more to do with this than ability scores alone.

Character classes and builds in D&D generally depend on one or more attributes to do their job:

• For a Fighter, this is either Strength or Dexterity, but Constitution also helps
• Rogues are all about Dexterity, and can make use of Intelligence and/or Charisma
• Clerics and Druids rely highly on Wisdom as it is their casting stat, but also benefit from Strength and to a lesser degree Constitution.
• Wizards are all about Intelligence, but are helped a bit by Dexterity as well
• Sorcerers rely on Charisma and also receive a little help from Dexterity

However, not all classes are this simple, or Single Attribute Dependent (SAD). Some classes, unfortunately, are Multiple Attribute Dependent (MAD), which means they have features and functions that key off of different attributes:

• Rangers rely on Wisdom for their casting, but need Dexterity heavily for combat and benefit from Constitution and/or Strength.
• Paladins are equally troublesome, as they need Strength (or possibly Dexterity) for their melee combat while using Charisma for their casting and paladin abilities. (PF actually fixed the worst of this -- the 3.0/3.5 Paladin used Wisdom for casting, which was terribad as it meant the character had to have 3 good attribute scores at a minimum.)

Furthermore, some character classes can afford to "dump", or take a penalty in, certain stats:

• Fighters can generally dump Charisma, as they aren't expected to negotiate their way out of situations
• Wizards often dump Strength, as they aren't getting into frontline combat
• Clerics and druids will frequently dump Dexterity, especially if they aren't using ranged weapons or have Zen Archery -- that feat also allows for SAD archer Rangers, relying entirely on Wisdom.

Overall, this means that P1 and especially P5 must be more careful with how they build their characters. P5 is going to have to go with a fully SAD class with an easy dump stat, for instance -- if they're dead-set on a Paladin or two-weapon fighting (aka dual wielding) Ranger, I'd let them reroll because it's not compatible with their stats array. However, that array would make a reasonable Fighter, Cleric, or Druid.

P1 is a bit more interesting, because they have a double dump on their hands -- most classes only have one designated "dump stat". It is still possible to be effective with two stats dumped, even as severely as that array dumps them, but it takes care to avoid backing yourself into an unexpected corner by dumping the wrong stat. (Dumping Intelligence, Constitution, or even Charisma can have unexpected side effects in certain games -- it may be the case that characters with a low Intelligence will not be able to speak properly, low-hit-point/squishy characters will have trouble surviving first level, or a particularly uncharismatic character will be run out of town before the adventure can get off the ground.)

_{Footnote: these lists are incomplete -- I don't have experience with all the 3.x or Pathfinder core classes}

Bonus: Racial bonuses shouldn't be used to "fill holes"

As to P1's racial attribute bonus? It should go to the dependent attribute for P1's build, not to fill a "hole" in their attribute scores -- you're basically always better off putting it in the strong suit, especially with a +2 bonus because that translates into an unconditional +1 to the derived modifier.