I tried messing with this too, though it's not something we use here...
Video to image works just fine, but the next video in the list will not play. According to the Player Display bar, it should be playing, but seeking will not work. Pressing 'Next' displays the next image.
As mojave reported, dragging the image away (how would you do that from the couch in theater view?) does start the video that is next in the list, but for me, despite "jump on play" for video being set to "Display view", the interface drops back to "Standard View" with the video playing in the action window display window.
-marko