No it doesn't pause. The idle is a clip, if there is one, where there is no penetration, or anything close to that, that plays in loop. Or ya the sex is paused.
Yes, the rate of movement any direction is what triggers slow or fast. Like a tempo, and should be able to set how sensitive the it is the the "controller/hands." Because some clips would be faster/slower, and what kind of toy you are using. So lets say, you might want to have to actually move really fast to actually trigger fast, or maybe you don't want to do that. It 100% needs slider for sensitivity. Or you get mixed results.
This is not like scripting, and doesn't mimic every micro movement. Very simple idle, slow, fast looped clips. Should be very simple to use. The idea is, to simulate you're actions to the video, instead of the girls actions towards you.
I have used software that works like this, and it is extremally immersive. IRL if you stop, and the VR girl keeps going, it really breaks the immersion, at least from my experience.
Edit: What I also think is very cool about this, is that this can also be "gamified."
One example, lets say a video already has this set up, and you could get a score. Or some scenes, the girl instructs you, or video instructs you and you can loose.