The cleat hits the ground. If I'm lucky I could do a one-legged 360 spinning around on the cleat. I'm pretty sure it's the front part of the cleat that engages the front of the pedal that's hitting the ground.

Until you can do a trackstand for a considerable amount of time (at the beginning, say, 30 seconds), you definitely do not want to be clipped in. You will try to plop your foot down because you feel the balance fading out, and you will struggle and topple over. Not fun. If you have ATACs, SPD's, eggbeater candies, or another flat-ish clipless pedal, you can definitely just learn how to trackstand while standing, unclipped, on the pedal surface.

Once you feel pretty comfortable with trackstanding, and feel as though you've mastered balancing yourself even if you wiggle around, take a hand off, whatever, and become proficient terminating trackstands voluntarily (as opposed to -- "uh oh, i feel like i'm going to fall down now" and stepping out), by all means clip yourself in.

Learning to trackstand is all about trial and error -- don't threaten yourself by clipping in and suddenly needing to clip out too quickly.

I haven't worn specialized shoes in years, but when I did I found them too ducky, tips pointed up, too much, made me walk like a duck. So long ago I can't imagine they still make them that way. If they do, and you walk heel to toe, with the cleat in the forward most position I imagine there isn't much to be done for it, cept buy new shoes. eggers, Time cleats have a lower profile than SPD, it'd be worse for you thataway.

They all the way forward for fit or just to avoid toe overlap? Nothing to be done for fit, but toe overlap is best dealt with by learning it IMO. My feet aren't huge-like, just a size 10-10 1/2, but I'm a small guy so they're big on me, I always have a bit of overlap.

to the OP;

Used pedals, used cleat, used shoes & spd to boot? You ought to consider having a brake on that bike, 2 if you haven't mastered the front brake yet. Learning fixed & clipless at the same time, sure, but in a grassy field, or a parking lot if rash for no reason is cool with you, no traffic though. velodrome would be the ideal place for learning both at once, at least for the spectators

Are we still talking about this?

I say put the clipless on your go-fast bike. Put straps on the bike you ride to the bar.

tell me about it. i did it in front a girl while we were flirting back and forth at a stoplight.

then i was on the ground and she was laughing. classy.