What happens if he gets killed before spellhold? Does he still show up and try to kill you?

****SPOILERS*****ABOVE AND BELOW ;)
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If he's not in your party when you walk through the front doors of Spellhold then no he can't betray you. He has to be in your party.

Are you sure? Because if that were the case then wouldn't you be able to aquire him again after chapter 3?

No, because if he doesn't fulfill the geas upon him, he dies.

That's right. If you leave him in the Copper Coronet before Chapter 3-4, and then try to go back for him in Chapter 6, he'll be there, but then he'll drop dead. I'd recommend keeping him in the party going to Spellhold if you want the have the privilege of, well, you know... ;)

And you can aquire 200.000 Expeasily if you take Yoshi with you (later ....).