It binds pretty much the same as the Typhoon H. "Create" a new "Model" using the Typhoon H base model. Ensure the new model is selected (a blue box around the icon). Then tilt the Q500 forward a couple times to get it in the bind mode. The rest is the same as for binding the Typhoon H.
The Q500 will fly fine. The camera is a different story. The CGo3 is 480p, the ST16 screen is 720p. You will have lots of artifacts on the ST16 screen. The recorded video and pictures will be fine.
You will have to operate the ST16 in "CGo3" camera select, which means you will not have any camera photographic features other than "point and shoot".
The Q500 and Typhoon H models are identical except for the picture on the "Models" page.
When you actually bind to the Q500, the ST16 recognizes the Q500 and makes the needed adjustments. You can verify the ST16 has correctly identified the Q500 by looking at the motor failure icon. It is normally shown as a Typhoon H. When bound to a Q500, the icon changes to a Q500.
If you want a Q500 picture on the Models Page, you can export the model file and edit the Icon.JPG by substituting any image you want.