TipStylez, increasing the lighting above your target and increasing the shutterspeed will help capture moving objects more clearly. I know that the 'sports' setting on my own camera really doesn't help much with moving fish.
Marn, I don't know if your camera has the same function but I can control the intensity of the flash on mine, turning it down rather than placing an object in front of it (it's a little more convenient). I have the Olympus C-765 UltraZoom, so I would imagine that you may have the same feature.