In director video is a cast member, just like everything else. Default castmembers added to stage appears 30 frames/cells long, you can shorten or extent that. Usually you play the video in one single frame/cell. It doesn't work as in video editing programs.
I am looking to create interactive videos. So for example I play video until the player gets a choice then the player clicks the choice and is taken to the next video. (choices can timeout too). Is Director the right software for this kind of interactivity ?
Another example; a video plays of someone walking down the road, something happens and at that branching moment the player can either go to the scene or keep walking.
Director is an ideal tool for what you have described so far.