1) Limitation would be great idea, for system as it is now. (Maybe not necessary when this system will be fully working, setting UI feels pretty crowded now on 1366*768 resolution monitor).
2) From time to time it is not problem (for example youtube has working auto quality). But i don't know what parametrs are used to decide when switch quality. For example: If is every 15 seconds checked my bandwith and only on this decision is my quality raised, then it is troublesome for people with "laggy/spiky" network connection, because it can hit the high download speed moment. On the other side, if quality would be changed after x succesfull checks, then it wouldn't make buffering happen so often. It would be for a price of longer wait before quality raise, but I think it is way better then previous variant i wrote where you have to wait for video to buffer and lower quality again.

While I was writing this feedback I had buffering happen like in 3-5 min intervals on auto, if I remember correctly. I just saw going video quality up and shortly after went into buffering. Can test it again tommorow if you want more precise info.

And I miss a question, how frequently you goes into buffer?

Thanks for your feedback, our network condition have stability issues, with auto setting, it may jump to re-buffer, or frequent quality switch.

Would like to hear opinions so we can improve our quality:
1) We would give user quality limitation in auto setting, so in this case, you can force quality limited to high;
2) With auto setting, do you feel quality switch is a problem from time to time?