Cisco got it! I knew he would, he's a smart boy. It seems he doesn't really like to touch the target, or he doesn't really understand why we're playing this game, but he knows now that touching the target gets him a reward.
I'm trying to edit a video of our first tries... We've had nothing but technical difficulties with the camera today. This video may be too big but I'm going to give it a shot. (Don't mind my scowl, somehow my face stuck like that. My poor horses probably don't know what to think. I need to make it a goal to soften my expression a LOT.)
Note that I make an attempt to not click and treat when he's crowding or mugging. The point here isn't that I'm rewarding him for anything yet, I'm just showing him that the click is connected to the food. But I don't want to click when he's doing something I don't like. When he's sniffing my right hand he's checking out the clicker. That's okay, I like curiosity, but it was kind of like mugging too. He wanted to know if it was food.
I'll try to get some video of the next step tomorrow, but it might be raining all day so we'll see...