This is something that's been biting at me for a while now. I've never used it myself because I haven't played a caster the last two campaigns.
So, the rules state: http://www.d20pfsrd.com/magic
Touch
You must touch a creature or object to affect it. A touch spell that deals damage can score a critical hit just as a weapon can. A touch spell threatens a critical hit on a natural roll of 20 and deals double damage on a successful critical hit. Some touch spells allow you to touch multiple targets. You can touch up to 6 willing targets as part of the casting, but all targets of the spell must be touched in the same round that you finish casting the spell. If the spell allows you to touch targets over multiple rounds, touching 6 creatures is a full-round action.
One interpretation: You can cast a touch spell (say, Cure Light Wounds) with everyone standing around you (up to six people) and for a single casting of Cure Light Wounds you heal all six people. Effectively that makes this a 6d8+caster level heal spell at first level.
The way I've always played has been that to cure a person you have to cast the spell - so in the same example I would have used up six spell slots to cast that many. I do realise I might have played it wrong.
How does it actually work? I'd prefer the former over the latter, that's for sure! Is it dependent on the spell?
One target for a spell unless it says otherwise.
Offhand I can't think of a touch spell ranged or otherwise that does affect multiple targets but one might exist.
*is somewhat glad to see he's not completely off the wall and others play the same way*
Bull's Strength seemed a bit OP to me when you can just gather around the cleric and everyone gets a +4 enhancement bonus for a single cast.
One target for a spell unless it says otherwise.
Offhand I can't think of a touch spell ranged or otherwise that does affect multiple targets but one might exist.
Dimension door, for one. Pretty sure there are more. This rule just clarifies that you can touch more than one person in a round if the spell allows multiple targets rather than only touching one person per round.
EDIT: Air walk, communal. Ant haul, communal. Any of the communal spells, really.
The easiest way is to check the TARGET description of the spell for plurality: Does it say creature (Singular, as Cure Light Wounds and Bear's Endurance), or creatures (Plural, as Dimension Door and Teleport).
As to the Touch rule above, you may find the 6 creatures a limiting factor, as spells like Water Walk allow the caster to affect the Target of: 1 creature/level, but a 7th level caster would still be limited by the "up to 6 willing targets as part of the casting".