So he only has to have a Nazgul in the last known location of the Fellowship? -If I am at 2 on the movement track, I am unlikely going to be at my last known location-.
Kickerz, it sounds like you are confusing last known position (the figure on the board) with progress on the Fellowship Track. To remove any doubt, follow these steps:
1. Play card
2. Move any or all of the Nazgul that are currently on the board to wherever you want them to go
3. After this movement, if a Nazgul is in the same region as the Fellowship's last known position, reveal the Fellowship
Free Peoples player
1. Move the Fellowship figure a number of regions away from its last known position equal to (or less than) its progress on the Fellowship Track (in your case, up to two regions)
2. Flip Fellowship progress marker and move it to 0