1. The major difference is suspended sentence is a criminal conviction and binding over is not a criminal conviction.
In short - binding over is more like a warning. It provides a chance for people who committed minor offense a new chance. On the other hand, suspended sentence is a condition. After the court imposes a punishment, the court suspends it so that you will not end up losing your freedom.
2. No. Your 2-month imprisonment will be suspended for 18 months. If you have met the condition set by the court after 18 months, that 2-month imprisonment is gone.