EDIT: Added answer for first question.
First question: Add the pagerClick option to the cycle function.
pagerClick:function(zeroBasedSlideIndex, slideElement) {$(slideElement).find('div.cover').hide();}
The second question seems easy: based on the plugin doc:
Assuming you have a play/pause btn
btnPlayPause.toggle(function(){$("#slideshow").cycle('pause');},function(){$("#slideshow.cycle('resume');})
you can also change the play/pause button image in those functions. Also look here
krishna
2009-08-17 02:43:09