ACR X NON ADHERENCE TO ATC CLRNC TO MAINTAIN ALT; STARTED APCH.

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ACR X; AFTER REQUESTING ILS APCH TO TLH 27; CTLR TOLD US TO TURN N (360 DEGS) AND MAINTAIN 7000 FT. I REQUESTED LOWER 4 TIMES AS WE WERE HIGH AND TIGHT (BEING HELD AT 7000 FT). FINALLY CTLR GAVE US 3000 FT AND A TURN TO 300 DEGS TO INTERCEPT LOC; CLRED FOR ILS 27. AS ACFT WAS INTERCEPTING LOC IN THE TURN I NOTICED POP-UP TFC ON TCASII AT 12 O'CLOCK AND 700 FT BELOW US. I IMMEDIATELY ASKED CTLR ABOUT THIS AS I PLACED MY HANDS ON CTLS READY TO EXECUTE A GAR. CTLR BECAME HIGHLY AGITATED SAYING THAT WE WERE TOLD TO MAINTAIN 3000 FT. I ANSWERED THAT THIS WON'T WORK WE WILL HAVE TO GAR. HE CLRED TFC IN FRONT TO TURN R 360 DEGS; THEN CAME BACK TO US AND SAID THAT WE SHOULD HAVE MAINTAINED OUR 3000 FT AND WE WOULD HAVE BEEN 500 FT CLR OF TFC AND THAT IS ALL THAT HE NEEDS TO PROVIDE US. HE TOLD US TO CONTINUE APCH; CONTACT THE TWR; AND CALL THE TWR (GAVE OUT PHONE NUMBER) IF WE HAD ANY FURTHER QUESTIONS. SUBJECT TFC WAS LCL BASED FREIGHT OPERATOR CALLED Y. WE THOUGHT WE WERE CLRED FOR APCH. CTLR NEVER INFORMED US THAT WE HAD THIS TFC TO FOLLOW WHO WAS THEN GOING TO FOLLOW US. SUPPLEMENTAL INFO FROM ACN 292962: APCH CTLR VECTORED A C170 TO BE POSITIONED UNDER US ON THE APCH; NEAR THE OM FOR RWY 27. THE C170 WAS ALSO LNDG. CTLR'S PLAN WAS COVERT; AND HE INTENDED FOR US TO OVERFLY THIS CESSNA AT THE MARKER; WHILE 500 FT ABOVE THE CESSNA. I INTERCEPTED THE LOC AND GS AND BEGAN TO FOLLOW THE GS; AND WE GOT THE TA FROM TCASII. WE QUESTIONED THE CTLR ABOUT THE SAFETY AND SANITY OF THIS AND DEMANDED A RESOLUTION. PRIOR TO STARTING OUR MISSED APCH; THE CESSNA WAS VECTORED OFF COURSE AND WE CONTINUED ON THE ILS. THE CTLR TOLD US THAT WE WERE NOT ISSUED A CLRNC FOR THE ILS AND THAT THEY WANTED US TO HAVE REMAINED AT OUR INTERCEPT ALT OF 3000 FT.