dvcochran
Grandmaster
Do you teach the Kicho forms to the 4-5 year old's? If so, doesn't this at least start teaching them the transition? I know it will not be perfect, not even close, but it is a start. Also we use the "not hitting the person next to you" issue as part of teaching respect, discipline, awareness, etc...That's a very important piece. It's good you know what your instructor expected on the tests. Here's a story of someone who didn't...
At my school, we don't teach punches correctly. We do that on purpose. Because if you try to teach the proper footwork to do a punch with power to a 4-year-old, that 4-year-old is going to take "pivot your rear foot" as "run forward 5 steps and accidentally punch the person in front of you". So we teach the kids to not move anything but their arms when they punch. Around green belt we start to clean that up.
One of the black belts who would judge was an older student who couldn't really do Taekwondo anymore, so he wasn't around the dojang much except around testing times. So he would sit there and look at these kids who are white and yellow belts and be really harsh if they weren't punching correctly, even though they were doing what they'd been taught, and had never even heard the criticism he was giving until that day.