Upscaling shouldn't do this as well, long discussion. What can do this from what I've seen is motion smoothing. Look around for motion smoothing and if you can, turn it off and re-test.
I recently purchased a Samsung mu9000. I don't know if I need to adjust settings but I am noticing faces being blurry and blurriness coming off people's heads when there is a close up of them. This was occurring while watching regular hd 1080p channels. Is this something that is just happening because of content or is there some settings I need to adjust? Would I be better off with a sony which is known for better upscaling?