Hello,
I just got one and have been using it for couple days now and I really like it. So far I haven't had any problems with it. I will try to answer your questions with what I have tried on the remote.

1. You are correct. You can play songs through your stereo speakers as long as the remote is on its cradle and the cradle is connected to your stereo receiver or a set of speakers. It have tried this and it works great.

2. About media manager queing songs, you are able to create playlists and you can also select songs by artist, albums, genres. Lastly, you can play songs that are in your favorite folders. I like the playlist and favorite feature since I can choose the songs I want to play for any party or family reunion.

Another feature I like is that fact that you can install the media manager in as many computer as you want and it creates a differect folder in the remote for music, pictures and videos. This way you dont need to have all your music in one place. If you don't mind installing the software in each computer you own.

So far I've had no problems, specially when connecting to my router at home. Just remember that if you want to control your music collection, the remote needs to be in the cradle if you are going to use your stereo receiver's speakers to listen to your music.

Hope I did not confuse you and I provided some help.