Mobotix Tech Support confirms this is due to an odd factory default setting in the camera. They explain further that although the Mobotix camera does not have a shutter speed setting since it has no moving parts, there is a roughly equivalent software parameter that needs to be modified.
Under Setup Menu>Exposure Settings>Exposure Time>Max. Exposure Time (Independent settings for each lens), this setting defaults to 1/5 which is terrible for walking people, etc. It is heavily recommended to change this setting to 1/30 or 1/60 to see which works better in your application.
With this change, the live image might not always look perfect but the recorded images of people in motion will show substantial improvement. Note: you are not to adjust the Min. Exposure Time, only the Max. As always, don't forget to set your changes store the complete configuration to flash before exiting the camera.
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