The service guy came today. He saw the Live Play/Pause issue and made a video of it on its mobile phone. He attached his own 4GB pen drive and it also had same problem... Live pause play stutters.
My complaint is still open. Lets see what they do. Its surely a bug in new software update. Scheduled recording seems fine so far. Only Live Pause Play stutters.
Also got my remote changed (for 2nd time). The buttons are working fine now but not sure for how long.