Well, what I was saying is that if he was 1 mil, that he would be right at 300 yards. So to take that further, the more mils he covers, the closer he is. In your example, if he covered 3 mils, he would be at about 100 yards. If he covered .5 mils, he'd be about 600 yards.
But like someone else said, the further out he is the harder it is to tell, and the more critical small errors are. The difference between,say, .6 and .4 mils is pretty hard to tell, esp since you won't be real steady and the coyote might not cooperate and may not be the perfect size. The other thing that could bite you is not having your scope set at the correct power for the mil dots to be correct.
I hope that makes sense. I really started liking this system last summer, so I'm not the true expert on it. But it's really pretty easy. Mainly, the way I see it, if you know the size of your target, you can calculate range. Or if you know the range, you can use it to calculate the size of the target. If you know neither range nor size of target, you can't calculate either.
For practice I built a steel coyote silhouette, the proper size, so I can place it at unknown ranges and judge range, dial and shoot. I plan on trying it out this weekend. After judging with the scope, I'll check it with a lrf and see how far off I was.