Admittedly the example scene 4 Object Oriented Sample can be a bit overwhelming, especially if you are not a programmer familiar with the design patterns used. The component SpineboyTargetController is used to control the target crosshair bone.
I had a look at your character setup: quickly testing with a created SkeletonUtilityBone hierarchy, moving the target bone around worked as intended, so it is setup correctly.
We would in general suggest to create a setup that you understand and not to adapt the 4 Object Oriented Sample if it is not what you would intuitively create yourself. You could also have a look at the 5 Basic Platformer example scene, which might be more easy to understand.
