Don't use it; it's crap. Do this:
$ sudo apt-get purge vlc
...instead of replacing the playlist.
$ cp /usr/share/applications/totem.desktop ~/.local/share/applications $ gvim ~/.local/share/applications/totem.desktop
Exec=totem --enqueue %U
To launch Movie Player on a playlist, right-click the playlist and choose Open with Movie Player or, from the command line,
$ totem path-to-playlist &
These are valid when Movie Player is the foreground application, but you must first click in the visualization window for the single-letter ones. Search for "KEYBINDINGS" in the man page:
$ man totem