The male actor in the pornographic movie is called Dick Dongler. This is a play on Dirk Diggler, the fictitious pornographic movie star from The Dirk Diggler Story (1988) and, more famously, Boogie Nights (1997) where the character is played by Mark Wahlberg.
Living Kai is performing an interpretation of William Shakespeare's history play, Henry V. The first performance shows the St. Crispin's Day Speech from Act IV, Scene iii. His second performance shows part of Act IV, Scene vii. The third time he acts (no audience but Xev and Kai), it is from Act V, Scene ii.
After the Living Kai's first performance, he tells Xev he must retire, "to sleep, perchance to dream." That quote is part of the "To be, or not to be" soliloquy given by Prince Hamlet of William Shakespeare's play Hamlet.
The title has two sources. Sean 'Diddy' Combs, American rapper, record producer and record executive, was known by his stage name of Puff Daddy from 1997 into 2001, when this episode aired. Fluff refers to Stanley accepting a job as "fluffer" to sneak onto a pornographic movie set (at the time, he was unaware that a fluffer's job, which is usually performed by females, is to prep male performers for their sex scenes and to maintain their readiness between them). The character of Huff calls Stanley "Fluff Daddy".
The director of the pornographic movie is Barnabas K. Huffington or, as Loo Loo calls him, "Huff". This is a play on Hugh Hefner ("Hef"), who is known for being the founder and editor-in-chief of Playboy magazine (a publication with revealing photographs), the creation of Playboy Clubs, and hosting celebrity-laden parties at the Playboy Mansion.