This may be an issue with using LCD in general, but you want to play with any motion enhancement features that are in the projector and turn them on/off to see how things respond. You also want to bypass any A/V receiver which may be between the source and the projector.
LCD is a very good product, but it is known for not having the same quality with faster motion as DLP models. This is something I have seen in the past, and is certainly not as much of an issue with my current DLP model. But, where the signal is going to hell is really hard to determine as there is so much in line which could be causing the blurriness.
Rare that I suggest this, but this is a good question on AVS Forum where there are a ton of owners of that specific model and they may be able to give you a far more specific answer.