Hasta La Motion!

I need some help with Kronos / Twixtor with AfterEffects. Considering a video in the link below that was shot from a Nokia N8 at 720p 25 FPS, how can one remove distortions from shots taken from such cameras ?

As it can be seen the application of twix to this video was totally messed up.

http://www.youtube.com/watch?v=CpAtn9tZDZw

Will a 60 FPS footage help to eliminate such artefacts ? Or are there any other settings i am missin’ ?

Also do these plugins work with fast moving objects in a footage ?

[P.S – I am new to using twix / kronos. This was my 1st comp with twix.]