There are quite a few samples in PlayMakerSamples\TestLab\GUI that deal with picking (e.g., MouseOverObjectGUI, MousePickCursor).
You can use Lock Cursor in the Set Mouse Cursor action to keep the cursor in the center of the screen (like in the NoExit sample). Or use Screen Pick with screen coordinates set to the center of the screen (0.5 if normalized).
For material cycling, take a look at PlayMakerSampes\TestLab\Material\MaterialEffects.