Dave,
Actually, it is the camera. The odd and even fields are taken at different times, so they don't match up. To do this properly, you need to use a non-interlaced camera.
The reason the pause looks good is because the camera is cheating just a little bit. To eliminate the blur, it only uses the lines from the odd frame, and interpolates to create the even lines. I can duplicate the process on your live image using Corel PhotoPaint, and I get an image that looks just like your paused image. If you look closely at the paused image, you notice that some things look a little blockier and blurrier than the live image.
Bruce
Bruce Ammons
Ammons Engineering