I see the same thing...  on the ADI needles do not move when making an ILS landing.   I have to use the HSI Localizer needle and the small bar to the left on the ADI by the 5 dots.   I bought weapon and use the HUD with my C-130J-30 for FSX and the needles work as advertised on there... The bars line up and the arrows align with the dots for ILS landings.
And before someone says I am not configured right, It works perfectly on my FS9 version C-130 and I have the cockpit set up identical for FSX.