For more complicated cryptographic objects and interactive protocols, the hybrids naturally become more involved. A hybrid may, for example, change an honest party's commitment from its real input to a fake value while leaving the rest of the execution unchanged.
Once every neighboring pair is indistinguishable, the simulated and real executions are indistinguishable as well.
A useful rule of thumb when writing such a proof is that the number of reductions should equal the number of computational assumptions in the theorem statement.