Ezy Air,
All this was discussed on
Page 6 of this thread, from post 111: way back in 2003!
To answer your main question, yes the N2 referenced is your Ng. PITA to come back from a sling load or similar sortie and try to guess how many times you've decreased power to <85%Ng, or above 98%Ng and then factor the 0.1 or 0.3 cycle count! Really, who is watching the Ng that closely when your head is outside flying? Then there is <70%Ng and back above 98%Ng for a complete cycle instead of the .1 or .3. Again, if you are bottoming the lever to attain those figures then you've more on your mind than watching the Ng gauge
Re your second question, the start cycles will be factors of 1. What else could they be?
Forget the Nr, it is irrelevant to the Arriel cycle count.