Nick - it is not a good idea to discuss travelling with respect to 2 or 3 steps being taken. It is better to talk in terms of establishing a pivot foot.
Assume that the player gains control of the ball with one foot on the ground. That foot immediately becomes the pivot foot. The other foot can then come down without travelling. If the pivot foot is lifted, then travelling will occur if the player attempts to dribble or places the pivot foot back on the ground. The non-pivot foot can take as many "steps" as the player wants, as long as the pivot foot stays planted.
In the case of your example, you are right. The ball has to be released prior to the 3rd step being taken ie. after lifting up the pivot foot and prior to setting the pivot foot back down.
Cheers!
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