Over and over again I hear people say that they hit a deer in the area above the lungs and below the spine and lost their deer. I've heard it referred to as "no mans land" and leaves your arrow covered in fat with little blood. Well I know what area they are referring too as I too have hit deer there, but what gets me is when they say above the lungs and below the spine....

I just dont see how this is possible! Immediatley above the chest cavity is the spinal column, then above that is a few inches of space where the backstraps are which are usually covered in fat. I beleive this is the area they are referring to but I always here it said as, above the lungs... below the spine. Maybe I have my anatomy screwed up?

No, I don't think you do. I believe this issue has been discussed before and most folks tend to come to the same conclusion as yourself.