A little bit more info from someone:
"Your mentioning of the Horse dance has given me a flash back :) I'm pretty sure that your daughter must have loved it. I love it too, and you simply can’t imagine the feeling/sensation of looking at this dance in person.
Horse Dance, which by the way is not only performed on the weddings but also during many local & folk exhibitions, is mainly a feature/part of Punjabi Culture. Especially in rural areas of Punjab horse dance is considered as essential part of celebrations (Punjab is one of the four provinces of Pakistan) (Same is being replaced by Camel Dance in Sindi & Balochi culture).
The horses trained for this purpose are not thoroughbreds, usually a local breeds are trained which are, when compared with thoroughbreds, are smaller in size. Mostly White or Black horses are preferred to be trained for dance. (Just because of being more beautiful looking). Most people prefer to train mares rather than horses. (Am not really sure why is that, will have to ask my father or uncles :)).
Dance is usually performed on the beat of a Drum (called “Dholl” in indo Pak), use of clarinet and “Ghungroos” (large number of small bells tied together) is also very common. Ghungroos, mostly in Red Color are also tied to the front legs of the horse, (which by the way produce a very beautiful rhythmic sound and it seems that even the animal is enjoying his ability to create this sound)
The horse is handled by his handler while dancing and is not ridden by anyone at that time. (People anyways avoid riding the horses trained to dance.)
As far as training of the horses is concerned; well there are no steal plates in their legs :). Nothing unnatural is introduced in their body. Use of harsh methods? Well Harsh Training methods is a relative term, and it really depends what you consider as harsh and what is acceptable for you.
My personal opinion in this regard is that no harsh training techniques are used to train the dancing horses. During initial stages horse whips are used to give commands, which of course cause pain, but don’t make a "crack” and is as necessary as in case of training of other such animals.
Later on, during the dance whips (made of ropes) are used to make a loud sharp sound, to provide direction and command to animals." Pakistan Horse Dance? - Yahoo! Answers