I just reviewed the wiki entry on MUSE - as you can imagine, it’s a while since I worked alongside this kit!
They used some motion adaptive techniques to vary the sample rate of colour components to keep the bandwidth down. So yes, there were motion blur issues in play. I seem to recall that the production kit did not apply so much of the bandwidth reduction, so it may be that I was seeing much better quality than was delivered on the consumer playback kit.
I don’t think I ever saw an HD LD player in the UK…
