Why don't you believe me?
Seriously, I'm a weasel.
Qn1: Can the Hound of Tindalos move into a location even though both the white and black arrows point away from every location? I also presume it can only move one spot (a speed of 1) each time that it's symbol appears on the mythos card.
Qn2: If you are lost in time and space for failing a skill check of some description, but you havn't become unconscious or insane do you lose clue tokens and items as though you had become insane or unconscious?
Q1: No, it moves to the nearest investigator in a location. So if the nearest if 3 spaces away in the Diner, then that is where it moves.
Q2: I am not sure on this one, but I assume you do not take the penalty for being knocked unconcious or being knocked out. ie: meaning you keep the clues and the items.