Help with 120hz Lcd Image?

I'm not 100% sure what this problem is called but I think its "jutter". I have a samsung LN40B630 120hz and i have the auto motion off and have the tv mode on standard and every time when someone walks or the camera moves slowly i see this "watery" stuff around the actors or objects.

I haven't messed with any of the settings besides the auto motion or tv mode. But is there a way to take this off or at least reduce it to a minimum? Its very annoying when watching a dvd or bluray because its very noticeable. Any tips are appreciated, thanks.

Suggestion:

Theoretically, you want the Auto Motion feature turned on in order to reduce the blurring effect. Additionally, there should be more than one setting for it. One of them ought to reduce the blurring to zero on minor movements such as you've described. I have a 2007 120 Hz Samsung and see no blurring except for very fast action, i.e. sports, and then not much.

Check the ref below for info that may help.