Yes, "Start by DTMF only" will make it start any time DTMF is detected.
Regarding false DTMF detections, yes, those are present, amount varies depending on music style. I think we should add a new "Threshold" setting to specify the minimum sound level for DTMF. Currently RB tries to determine this value automatically, but as you see it's not perfect.
Timing settings are 20ms tone/20ms blank - those are minimum allowed durations.