1. A method for using a gesture in connection with an interactive display system on which images are displayed and objects disposed on or proximate thereto are optically detectable, comprising the steps of: (a) forming an image with light reflected from an object that is disposed above a display surface of the interactive display system, the light that is thus reflected being detected after passing through the display surface; (b) processing the image to distinguish between touch objects physically touching the display surface and hover objects proximate to the display surface and to recognize a gesture that was made by the user using the object, said gesture being recognized in response to detecting at least one connected component within the image, said connected component comprising adjacent pixels having an intensity within a predefined threshold; and (c) as a function of the gesture that was recognized, automatically producing a response that has previously been associated with the gesture, said response changing a state of the interactive display system.