Way back when I first started going to Al-anon meetings, I didn't like this part either and I mentioned it to my sponsor. She said it was common among newcomers to Al-Anon b/c our social skills have been limited by hanging around with alcoholics. We get so used to being "on guard" all the time (esp. in social situations) that we have a hard time just letting go. She said it would pass, and it did. Never did (and still don't) really like being touched by people I don't know well - if I had to go to Europe and do that French "double kiss on each cheek" thing I see in the movies I would probably slug someone.
It is your body and your life - I personally don't think you are out of line refusing hugs, etc. if you feel uncomfortable with it. Maybe that will change, maybe not but it should be respected anyway.