Background & sprites are smearing towards the player during movement. Help determine the cause and solution?

Hi There! So I'm having a problem with character movement and my background. The background appears to be smearing(smudging) slightly in the direction of the character as it moves which looks really hard on the eyes. I have no idea what is really causing this but it might be the way I am moving the character.

I'm wondering what is causing this strange smearing movement effect and how I can fix it. Please keep the explanation noob-friendly for me and thank you very much in advance!

So here are the details:

• The game is 2D and the player is constantly running in one direction and can jump.

• I can't get a screenshot of the effect (So maybe its my eyes or my
  computer?) but you can clearly see it when playing. Here is a link to the project so you can see what I am talking about yourself if my details don't help explain the effect. You will notice on the mountain tips and the clouds as you pass them. https://sites.google.com/site/benprojects50z/home/the-recycler-2d

• The effect makes it look like parts of the background sprites (ex. mountain/clouds) smear(smudge) towards the player temporarily as he hops/walks by.

• The camera is orthographic and is a child of the player.

• The character uses the Unity character controller and has no rigidbody.

• The character moves using the character motor and this script:

   var moveSpeed : float = 10; 
       var jumpSpeed : float = 25;
       var dead : float = 0.01;
       var player : GameObject;
       var anim : Animator;
       var gameOver = false;
       var countDownStyle : GUIStyle;
       var jump: AudioClip;
       var playerDead : AudioClip;
       
       private var moveDirection : Vector3 = Vector3.zero;
       private var motor : CharacterMotor;
       
       function Awake () {
       motor = GetComponent(CharacterMotor);
       }
       
       function Start(){
       anim = gameObject.GetComponent(Animator);
       }
       
       function FixedUpdate () {
       if (RecyclerStartLevel.startG){
           var controller : CharacterController = GetComponent(CharacterController);
           controller.Move(Vector3.right * (moveSpeed) * Time.fixedDeltaTime);
           anim.SetFloat("Speed",moveSpeed);
       
           motor.inputJump = Input.GetButton("Jump");
       
       if (Input.GetKeyDown("space")){
           audio.PlayOneShot (jump);
           anim.SetFloat("Speed",jumpSpeed);
           
       }
       }
       }
  
  

EDIT 1 This is an edited screenshot to show you what I'm pretty much seeing. http://i.imgur.com/9g79fRZ.png?1?8650

EDIT 2 So apparently the effect is only on my computer so I'll just have to see if I can change the scene setup I guess to make a work-around.