I am planning on derping around with this after the z1 tourney. Two questions. How does the the damage boost and floor drop work in the hobo area, and why doesn't this category allow the skip to mars through the movie theater since its an in game thing. Or is that considered a password?

Hold down on the dpad and jump to drop down to the section with the extra life in the hobo area. No damage boost necessary, just a weird little trick. I assume that's what you're referring to.