I don't think so, as I recall they are eligible until they increase their number of scholarships the transition to FBS. But I believe they are no longer eligible for any CAA crown, or auto bid once they announce.
Yep, I'm still bitter about this – they banned us from the conference tournament in 2001. We finished 1st in the CAA for the regular season, cut down the net at VCU (still have my ticket stub from that glorious day), then just missed out on getting in the NCAA tournament. Missing those conference tournament games really hurt us.
The rule is still in place, and it's still ridiculously petty. How are you going to have a team in the conference playing games against other conference teams and then arbitrarily decide they can't win the titles or compete for the tournament title, in sports that have one? Either kick them out immediately or let them compete for titles until they're gone.