I can't say for certain as I don't use a 530, but based on a 430:
1. It depends - there is a setting for ILS CDI Autocapture on the AUX page, if set and using a loaded approach then it should switch, though often I find the auto switch will happen too late (you get GPS guidance as an overlay for the NDB outbound bit, but it seems in most cases it wants to establish you on the localiser track using GPS before switching), so have to do it manually anyway.
2. If you hit the OBS key that would suspend the approach - somewhere the display should indicate e.g. SUSP, but not anything more obvious than that. It's worth noting however that the AAIB report suggests the only way they could reproduce the flight path was to use a Direct to the NDB (and the OBS mode where the CDI indicates deviation from a specified track to/from the beacon, and the screen would show simple GPS distances), rather than loading the approach.