A couple of points about your new pride and joy.
The reason that it only runs in one direction is that you have presumably wired up the Switch as an On/off only. From the picture of parts the switch appears to have 6 contacts. Therefore you can wire it up so that the Loco will go Forwards and Backwards. The following link will show you how:-
https://www.google.co.uk/search?q=dpdt+switch+diagram&ie=UTF-8&oe=UTF-8&hl=en&client=safari < Link To https://www.google.co.uk/...-8&hl=en&client=safari
Re not liking your points, the Back to Back will be the problem here, most kit based wheels are of Fine Scale Standards. You need to move the wheels out a fraction so that when it goes through the point the Check Rails do their job. What their job is is to ensure that one wheel does not go the wrong way on the Frog. You may still get a bit of 'dipping' at the frog, but maybee nt.
Hope this helps,
JonD