I'm trying to create something similar to this example:
What tool should I use, or is it just squares and circles attached together? Great if you know a tutorial for this effect.
Which part are you referring to? If it's the spiral, don't use the spiral tool. You'll want a linear/Archimedean spiral for that. You can find a tutorial on creating those here: http://vectorguru.com/tutorials/013-archimedean-spiral-in-illustrator.html
If it's the circled segments of the spiral, just split your spiral into individual paths and give them circular caps (under the 'Stroke' menu).
If it's neither of these, please clarify and I will try to help/analyse. :)
That kind of tight, uniform spiral is called an Archimedean spiral (aka Archimedes spiral). They can't be made by the regular spiral tool which only makes expanding (logarithmic) spirals.
There are two ways to make them I know of:
A method using art brushes described on vector guru:
Object > expand