Actually not strictly true

... you only need to put the ILS in Nav1 - nav 2 can be used for an on field VOR as a secondary distance from airfield indicator or for a navaid in the missed approach procedure.
If you want to use the autopilot, do this:
Position yourself about 2000 feet above ground, at a 30-45* intercept heading that will intercept the ILS about 10 miles out - use the FS ATC, fly online, or use GPS to help - (you will have ALT and HDG buttons engaged).
When you are cleared for the approach, press the APPR button leaving HDG and ALT on. The A/P will then turn to line up with the localizer and HDG mode will disengage itself. When the glideslope centres, ALT will disengage, leaving only APPR - it will now automatically follow the ILS.
Also the localizer and g/s indications can also be seen in the VOR1/NAV/HSI display as well as in the AI (Attitude Indicator) but its probably easier to use the AI cos its all in one place then.