After disposing of the French fourth seed, Belgium's US Open champion now faces Anna-Lena Groenefeld.
It was a disappointing day for US Open champion McDowell and ex-Ryder Cup captain Colin Montgomerie.
"It's disappointing because I started off so poorly again, " said the three-time US Open champion.
Victory over Kelly would bring Casey a quarter-final against Retief Goosen or US Open champion Angel Cabrera.
The US Open champion leads the four-man event - for the season's Major winners - by five strokes.
Woods has been paired with Ernie Els and US Open champion Graeme McDowell.
Tiger Woods was the US Open Champion in each of those 3 years.
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In addition to his Masters triumph, Floyd won the USPGA Championship in 1969 and 1982 and was US Open champion in 1986.
The Holywood player moved to four under and is three strokes better than US Open champion Graeme McDowell, who struggled to a 76.
That, however, is less of a concern for US Open champion McDowell, who hit the winning putt for Europe on Monday in Wales.
In come Ireland's Padraig Harrington (17th to eighth), Luke Donald (13th to ninth) and Australia's US Open champion Geoff Ogilvy (50th to 10th).
Second seed Amelie Mauresmo of France beat Tathiana Garbin 6-2 6-1 and US Open champion Svetlana Kuznetsova defeated Czech Eva Birnerova 6-3 6-2.
The 30-year-old Englishman trailed by one after the first 18 holes and US Open champion Cabrera stretched ahead with five birdies in the afternoon.
World number two Vijay Singh, US Open champion Michael Campbell and USPGA winner Phil Mickelson are also among the field at Sheshan International Golf Club.
The 2003 US Open champion forced his opponent to put a backhand wide, an approach long and a volley wide to bring up two set points.
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None of the nine leading players has won a major title, with two-time US Open champion Retief Goosen the most decorated of the contenders at five under.
Many pundits are also tipping Sweden's Henrik Stenson, the world number eight, South Africa's two-time US Open champion Retief Goosen and compatriot Ernie Els, both twice Masters runners-up, as lively challengers.
But former US Open champion Lee Janzen missed out on 140, Germany's Alex Cejka failed to qualify on 138 and former US Ryder Cup player Steve Pate missed out with a 145.
The double US Open champion, seeded third, began nervously and lost his opening two service games but his extra class told as he set up an all-Aussie meeting with Mark Woodforde in round two.
The US Open champion was among five people who were killed when his Learjet, bound for Dallas from Orlando, flew uncontrolled over part of the United States for several hours before crashing in South Dakota.
He is a two-time US Open Champion and has won all four Grand Slam singles titles, and has victories in Davis Cup, Masters Series and an Olympic gold medal thanks to his precision and exceptional timing.
The reigning US Open champion must have been delighted with the thunderstorm that arrived when the Russian, who earlier this month was beaten in the Stanford final by Victoria Azarenka, required just one game for victory.
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Woods, the US Open champion at Pebble Beach in 2000 and at Bethpage Black in 2002, is chasing his third major title in four starts after victories in last year's USPGA at Medinah and Open at Hoylake.
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But after chipping up to around seven feet the former Open and US Open champion proved his putting could handle the pressure by holing out impressively again for his 64th professional victory only 10 days before the Masters.
The Briton was himself being aggressive on the forehand side and the extra variety in his game had Del Potro reeling, two drop shots leaving the US Open champion totally flat-footed as the first five games went to Murray.
"GAME GOLF not only gives everyone access to crucial data to dramatically improve your golf game and handicap, but it also makes playing more motivating, rewarding, social and fun, " said Graeme McDowell, 2010 US Open Champion and GAME GOLF investor.
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Davis made a play-off against former US Open champion Jim Furyk at the Verizon Heritage event but called a penalty on himself for illegally striking a reed with his backswing, suffering a two-shot penalty which effectively handed the title to Furyk.
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Singh, Jones and US Open champion Glover all completed their rounds in the kinder morning conditions, and it will be Fiji's two-time former champion Singh, as the first to post three under, who partners Woods at 1940 BST in round three.
Montgomerie saw his chances of overhauling US Open champion Michael Campbell in the European Tour Order of Merit this weekend fade away as his three birdies were cancelled out by a bogey and a double bogey for a second consecutive par 72.
Two-time US Open champion Els fired a one-over 73 to end on two over, while the world's to two players, Woods and Mickelson, could not emulate their rounds of 66 in previous days and ended with 75 and 73 respectively for three over.
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