I believe you can also move 1 space, then if you are adjacent to something, tow that thing one space.
This is correct. Just think of movement like a points system. Say you have 3 points of movement. It takes 1 point to move yourself 1 space and 2 points to move yourself and a towed object 1 space. If at any point you do not have the full amount of points needed to tow, you are not able to. You can however use the left over point to move on your own. In some cases you may even be forced to use the left over point, depending on how the card reads.