Steve,
for your specific task you don't have to use "Target" drop down menu.
Just tick the L box, select your Luminance image , un-tick the R, G and B boxes and drag triangle instance on to your image. That will do it.
If you didn't preprocessed your Luminance image, you won't see any difference.
Try to set Saturation from 0.5 to 0.2 and you will notice color boost after combining L.
The "Target" drop down selection is useful when you have extracted all channels from specific image, then selecting that image as target and LRGB tool will automatically select the corresponding R G B channels.
If you didn't saw this yet, watch both parts of NGC1808 LRGB video here:
http://www.youtube.com/watch?v=zqhLKIjGMXA it would be really helpful.