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The reset button on my 89 740 is a bit sticky. I have to usually wiggle the pen I use to push the button in a few times before the reset button "unjams" and goes down all the way (at least 1/2"). Keep on trying and it should unstick itself. This process seems to be necessary each time I reset the light.
There is no need to have the car on or off when doing the reset I think it is mechanical and contained within the odometer.
As for your other questions I leave that to others who are more competent in those regards. However, I have heard of people (on this forum) adding abs to their non abs cars however it is a involved task requiring much work.
Tim
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