Editing spells.2da didn't work, at least not in the way I approached it. I tried editing the two entries directly (Activate Item: Long Range and Unique Power) to simply add the targeting circles to the TargetingUI column, where several spells like Fireball or Isaac's Missile Storm show entries taken from spelltarget.2da. I tried several shapes and sizes for the circles, including ones that were used by the spells above. Nothing appeared on the ground, and I know the edits were in effect because I also changed the casting animation.
Next I tried copying all of the settings from the Fireball entry except for the fireball scripts onto the Activate Item entry. That didn't make a circle appear, either, but it did produce some special effects in addition to activating the item as normal (no damage of course, since the only script was the normal Activate Item script).
Looking at other spells like Summon Creature, I see that they don't have anything in their TargetingUI column as the offensive spells do, so there may be something somewhere else that controls whether it appears, and the TargetingUI column may be simply a way to change the circle's style to something other than the default, if there is a default.
Next I tried editing iprp_spells.2da so that the Activate Item entry pointed to the Fireball spell index. The description in the examine window showed "Activate Item" for its Use, but right-clicking on the item showed the icon and name of the Fireball spell. The console, however, did not report that I was casting Fireball, but only that I activated an item, so that's good.
The target did appear on the ground with this method. So, since I can't get the other method to work, I could go through looking for something that sounds generic enough and has a target, and edit the spell script to override its behaviour.
I'm starting to think that having a targeting circle might not be worth it for the incompatibilities it may introduce, such as with Kaedrin's pack. I know he overrides spells.2da and spelltarget.2da in the older version I have, and have no idea what he may override in the latest version.