Bushnell blur
 

I thought this problem was isolated to the '10 models.
My '09 has it bad, tried updating the firmware, but it says not supported.

Every camera out there will give you motion blur to some degree in night time photos....try setting your camera to a three shot burst and you will get a better picture on #2, 3 than you will on the first. Don't exactly know why other than the flash may not be completely illuminated on the first shot.

Be glad your camera didn't take the update or you would have fried it completely!

I have 7 of the 2009 model Bushnell Trophy Trail camera. The bottom four batteries are wired in series. The top four batteries are wired in series. This provides 6 volt for each section. Now both sets are wired in parallal. This still only provides 6 volt to the operating system of the camera. For some odd reason, when set to video, if the lower set of four are not fully charged, the video at night will act up. If for instance the video is set for 30 second, one may get varied lengths other than the 30 second setting. This may be one reason you are having the blur problems. These cameras have the bar indicators, but these don't tell one very much. A good cheap investment is a digital multi meter obtained at electronic or automotive stores.
Also having the camera set too close to the trail may cause these blur problems at night. Day time does not bother because the LED's only work at night or in very dim conditions.

Any camera will have that. I have a Cuddeback Capture and some pictures are blurry as well. Just a down side to all trail cameras.

Every infared cam will do that when the animal is moving with some speed. Faster the movement the more blurr you'll get. Just a delay in the flash to camera picking up the light giving you a movement image of the animal resulting in a blurr.