Summation in two variables can be simplified when one of the variables is determined by the other one. Here we have $a+b=1$, so we can simply replace $b$ with $1-a$ in the inner expression and sum over all $a\in\mathbb{F}$. However doing this is not always necessary to derive formulas or solutions.
Now for question 1, note that any solution $(x,y)$ to $x^n+y^n=1$ will correspond to $u$ and $v$ such that their sum $u+v=1$; simply take $u=x^n$ and $v=y^n$. So we can take the set of all solutions and partition them into cells, each cell is labelled by $(u,v)$ such that $u+v=1$ and inside each cell are all the $x$ and $y\in\mathbb{F}$ such that $x^n=u$ and $y^n=v$. Since these $x$ and $y$ are independent of each other when $u$ and $v$ are fixed, we conclude tha the number of solutions inside the cell labelled $(u,v)$ is just the product of $N(x^n=u)$ and $N(y^n=v)$. Summing over the available indices gives
$N(x^n+y^n=1)=\sum_{u+v=1}N(x^n=u)N(y^n=v).$
For question 2, we use direct substitution:
$N(x^2+y^2=1)=\sum_{u+v=1}N(x^2=u)N(y^2=v)=\sum_{u+v=1}\left(1+\left(u\over p\right)\right)\left(1+\left(v \over p\right)\right)$
Multiply out the summand on the RHS and split into multiple summations. Note that if you are summing over $u+v=1$ but the summand only depends on $u$ (respectively, $v$), then we need only note that for any $u$ (resp. $v$) there is exactly one $v$ (resp. $u$) to make $(u,v)$ a solution to $u+v=1$, so we are effectively just summing over all $u\in\mathbb{F}$ in that case!
n.b. I replaced $a$ and $b$ with $u$ and $v$ here.