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If the motion blur is in the actual footage, the only way I know of to remove it is to reshoot using a higher shutter speed. Other than that I think you may be stuck with what you have.
I'm with you. If one has a Clip, butted to another Clip, with NO Transitions, the first ends, just as the other begins. I do not see "Motion Blur," coming into play there.
As for Motion Blur, Jim has the only real answer, that I can think of.
Maybe something is being called something else?
Maybe he is talking about the comb effect in the freeze frame and it needs to be deinterlaced?