I need some help with this!!

First thing I would do is reset your camera. This is a fairly easy procedure which involves either going into your setup menu and choosing "reset," holding down the menu key for 5 seconds, or, removing the batteries for a few minutes. It may be that the firmware loading got corrupted and the camera just needs to be "rebooted," which is something that turning it on/off won't accomplish. But after which, you should have the camera reset to factory default settings.

But often, it isn't something going wrong with the camera, it's how you're using it. If you are just pointing the camera and shooting, you will run into shutter lag with any camera. It's just a fact of life. And if someone moves at that time, you end up with the blurred image. But there are ways to combat it and speed up your camera's performance:

1. Prefocus. Hold down the shutter half way to get a prefocus of the image you're shooting. When it changes, prefocus again. This will speed up your camera's performance during picture taking since it won't have to autofocus before it shoots the shot.

2. Use faster SD cards. Yes, there are faster cards and it does make a difference in writing the image file to the card. This is especially key if you're taking multiple or burst images.

3. Fresher batteries. Use alkalines at least. But I recommend using high energy batteries designed for digital photography. Varta is a good brand. They are usually sold in camera shops, are long lasting (because they are sold in small quantities) put out alot of energy.

4. Shoot in "sports" modes when you're in situations that require action. Night or available light modes when in night time settings. These presets can help in speeding up your shots, rather than the camera taking a split second to evaluate the conditions of the lighting.

5. Go manual. If you are manually focusing, particularly in darker settings, you can constantly refocus the image as things happen. Also, the infrared does have a range and if your image is out of that range you can end up with the camera's "best guess" or infinity setting which may not help. You can also go manual on fstops and shutter speeds as well, getting more light faster when you choose.

6. Go with a shallow depth of field.

7. Pan with the action. You can create some pretty cool shots by panning with your shot, focusing on your subject. This will create the effect of your subject in sharp contrast to the blurry background.

8. Use a flash - even in day time. This will "freeze" the image and cause your subject to "pop" in the shot. However, flash is only designed for limited range and can dissipate outside of about 20-25 feet unless you're using a zoomable flash.

9. Stick with 100-400 ISO. Going higher will cause more noise/grain in your shots, particularly in darker settings.

Richio is right that shooting kids in Sports modes is a good idea. And if the IS is not on, turning it on with the camera settings menu will help ... ALOT.

And adding the flash can freeze the action and make those subjects "pop" in the picture. But if you're not prefocusing, you're allowing the camera to take it's time to focus and shoot the shot, and chances are, you lose the moment or end up with a blurry picture. Prefocusing will cut that lag time by as much as 80% and help insure you get a clear shot.