1) I would probably agree with Aghori here, I would say range switches simply when you land a blow. However, one might also argue that range should switch when the impact rating exceeds the AV alone, but not necessarily BN/2.
2) You could make grappling work, sure, but I’d say the Bind & Strike manoeuvre is what you’re looking for. I’d use ATN 6 (same as a buckler) for such.