The scout guard is a true 5mp camera and does not use interpolation. My guess is it's the optics themselves.The price of the camera probably prohibits the use of high optic quality lenses. You've got to give up a little in order to get all the other features packed into the scoutguard. My opinion is that no other camera on the market under $350 produces better pics. The old cudde's did, but they were $400. There are some other cams that have better pics,but they're over $400. The only other option forextra high quality pics are home brews, but most aren't willing to invest the time and money. You get alot for your money withthe scoutguard, but no they don't have the best pictures possible, just the best for under $300.The blurred pics are common with all cameras when the critters are moving. Again, the old cuddes had fast shutters and produced excellent pics. Those results are gone with the c3000. My other guess is the fact that these are IR cams that the shutter speed has to be slower to gather enough light for night time shots thus producing some blurred pics. Again, you got to give a little to get alot.