Yea, as these Himedias are advertised bravely with KODI 17 now, I can understand your complains, as it seams very very odd and misleading marketing strategy (and nothing more at the moment).
If you want correct local playback with KODI you should go back to 16.1, and install the auto fps patch. If you also want IPTV steaming stutterless, than go the Video Playback menu in KODI setting and turn OFF both Acceleration option, and disable the fps patch.
But if you want to keep the KODI 17 interface than try some of the "shitty" builds, which are KODI 17/16.1 hybrids:
http://mirrors.kodi.tv/test-builds/android/arm/I know, these are already enough gadgeteering to a Box that supposed to work right out of the box, and casual users normally shouldn't have to even care about them, but are still possible solutions.
My preferred workaround is to have the 1.0.9 fw and use the Wrapper for local playback, and KODI 16.1 for IPTV streaming. Almost satisfied, almost since I really miss the correct DVD fps switching implementation and a few other basic features.
(You can also try to install LibreElec to your U1 box. You will get KODI, fully operational, with HD audio, and nothing more, just a decent media player. And just a few minutes to pop it up to and SD card. Besides you still can keep the original Android on the Box, and you loose nothing.)