We own a 1996 Tracker and have towed it since it was brand new. You got it right...you put the transmission in Park, the 4x4 transfer case in neutral, the key in the ACC position, and make sure the parking brake is off.
Key to not hurting transmission is to make sure NOT to tow it further than 200 miles, our manual has this underlined. Stop around the 200 miles, put the transfer case back into gear, run through the gears in the transmission, we let it run for about 3 minutes. Turn it off, reset back to "tow mode" and you are good for another 200 miles of towing. Easy.
Enjoy!
