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Never mind. I looked up the 530 on the Garmin website and I see it does have the electronic compass. I have the 60csx, and when the compass acts crazy like that, all I ever have to do is calibrate it, and then it works fine. One thing to remember is that every time you change batteries, the compass needs to be calibrated again in order for it to work properly. Are you sure you have calibrated it? Which is done by turning it slowly in a circle twice?
Isn't there a button on the front that if you hold it down it turns the compass off? I'd tell you which one, but I lost my 530 this summer. I kept turning it off in my pocket. Same thing with the volume, hold a button down, and it goes to mute. Worth a try...