Can you attach a saved game file here? Save it just before combat, and make sure you describe the behaviour in detail (ie. which battle is screwing up, which round, what the rolls were, what you think they should have been, etc.)
When you attack…
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when you attack does that count as a movement. Like if a fighter travels 2 territories then attacks does it have 2 moves left or is the attack considered a move?
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To the fighter question, yes; it still has two moves left. Though tanks can move two spaces, if a tank moves one space and is involed in a battle, its movement is done.
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once a land or naval unit moves into battle its move is over, except if these units are retreated in which case thay can move back to a territory they came from and their move will be over. In the case of air units, actual combat does not count as a move.
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Are you counting the territory you’re moving into? for example, fighter goes through Eastern Europe and Ukraine (from Germany) to attack Caucasus. Caucasus counts as a move, leaving 1 movement left…
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Is it possible to retreat infantry at all, since they can only move one (and use that to get to the fight)?
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Yes, you can retreat infantry. I don’t think retreating uses movement points.
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I don’t think retreating uses movement points for land or sea units, but what about air units?
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It does. In fact, you will probably land your aircraft wherever you planned to if the attack succeeded…