Two questions :-

1. Yes expected behaviour. You can try to put the remote into "mouse mode" ( press the mouse button if there is ), or you stick in a wireless mouse or an airmouse.

ME: Ok, as yesterday i am start to use a wireless keyboard with touchpad to kind of, replacing the remote controller, so, that's the best option i have i guess. 

2. MX player - you can try with an add on codec library and play with the various HW+, HW or even the SW codecs.

ME: I did try that but none is working without stuttering / lag with those codec, changing to HW+ is not possible as there is no such option, only HW and SW is there. However, if I using the KODI player, then it run just fine.... I wondering how come... Maybe tonight when I at home, give VLC a try...